The ASX 200 closed 0.66% lower at 8,481 points on Tuesday. Over the past five days, the index remained mostly unchanged but is currently 1.56% below its 52-week high.
The top-performing stock of the day was The Star Entertainment Group, which rebounded 15% after previous declines and closed at $0.155 per share. On the downside, Challenger Limited fell 9% to $5.58 per share following the release of its first-half FY25 financial results.
In economic news, the Reserve Bank of Australia announced a 25-basis point interest rate cut, bringing the official cash rate to 4.1%. The decision was influenced by cooling inflation in December, though the RBA warned that upside risks remain.
Analysts caution that lower inflation and falling interest rates do not necessarily indicate an end to the cost-of-living crisis, as prices continue to rise, albeit at a slower pace. The issue is expected to remain a challenge for the Federal Government ahead of the upcoming election.
Positive moves in the small cap sector were made by Cyclone Metals Ltd, which was as much as 12.07% higher to $0.065; Sprintex Ltd rose by 10.35% to a daily high of $0.064; Titan Minerals Ltd hit $0.50, an increase of 8.7%; American Rare Earths Ltd lifted 8.2% on the previous close to $0.33; Antipa Minerals Ltd improved by 8.11% to $0.04; and Far East Gold Ltd reached $0.172, a rise of 4.24%.