Stocks close lower after RBA rate cut

INVESTORS’ eyes and wallets appeared to be fixed on the Melbourne Cup and not the Australian stock market today, with the local bourse trading sharply lower on low volumes before the Reserve Bank of Australia’s unexpected 75 basis points cut to the cash rate brought some sentiment back into the market in late afternoon trading.

The benchmark S&P-ASX 200 index jumped from 4170 points, prior to the news of the rate cut, to 4215 points at market close, down 0.15%, while the All Ordinaries fell 0.08% to 4169.8 points.