The ASX opened lower this morning with the S&P/ASX200 dropping 67.00 points or 0.92% to 7,211.50.
The index has lost 0.88% for the last five days but has gained 9.48% over the last year to date.
Today’s bottom-performing stocks at the time of writing are Chalice Mining Ltd (ASX:CHN, OTCQB:CGMLF) down 5.33% and Afterpay Ltd (ASX:APT) also down 5.33%.
Other underperforming sectors include Real Estate, Communications, Consumer Discretionary, Materials and Health Care.
Afterpay, BHP, Westpac, ANZ and Fortescue Metals were all dragging the market lower; however, Energy is bucking the trend with Woodside up 2.5%, albeit well off its early high.
RBA will keep cash rate at record lows
Nobody has any doubt the Reserve Bank of Australia (RBA) will keep interest rates at a record low of 0.1%.
CreditorWatch chief economist Harley Dale said: “The Reserve Bank of Australia (RBA) has established a clear intention to retain strong support for households and businesses.
"The Board of the RBA has determined to keep the Official Cash Rate (OCR) at a record low 0.1% for a 10th consecutive month. Predictably, there is no plan to increase the OCR until 2024 and policies are being maintained to assist in keeping downward pressure on borrowing costs.
"This environment will be very beneficial for businesses and households as they look towards the hopeful easing of lockdown restrictions in late October/early November. The highly stimulatory monetary policy climate will also be crucial in moving through the inevitable bumpiness and uncertainty of a post-lockdown economy. This is something the RBA will be keeping a keen eye on.
"The approaching reintroduction of lending restrictions for residential property, which the RBA plays an integral role in, makes this a key area to watch in approaching months. The RBA has been noting upward pressure on property prices and housing affordability for a considerable time and will now be upping the ante.
"Due to the combination of easing lockdown restrictions and tighter lending conditions, the RBA faces a different dynamic in coming months than has been seen over 2021 to date."
On the small cap front
Antipa Minerals Ltd (ASX:AZY) is up 6.52% at the time of writing having been as high as 8.7% on the back of high-grade gold and copper results along with silver and cobalt from 11 drill holes at its wholly-owned Minyari Dome Project in WA's Paterson Province.
Creso Pharma Ltd (ASX:CPH, OTCQB:COPHF) is up 2.38% after it announced it had secured over $800,000 in new purchase orders, through a mix of bulk supply orders and ongoing sales with provincial partners.
Other small caps of note:
- 9SP +8.33%
- AIS +3.23%
- ALK +2.84%
- AME +6.02%
- AZY +6.52%
- AKM +7.14%
- AUT +8%
- CPN +5%
- CVS +11.11%
- GCY +2.7%
- HHR +4.17%
- HRZ +4.76%
- LIT +2.17%
- MAG +5%
- MEI +6.52%
- PNR +2.44%
- POL +7.41%
- PDI +4.35%
- RED +4.55%
- SRI +3.64%
- TBN +5.71%
- TGM +2.86%
- TIE +6.58%
- ZLD +2.63%