Rate cut hopes dashed, ASX flat on RBA hold, property sinks behind Mirvac

The local market finished flat, with the ASX All Ordinaries Index (ASX: XAO) managing a gain of just 2 points on Tuesday. Strength in the defensive communication and financial sectors, led by an end to Commonwealth Bank of Australia (ASX: CBA)’s losing streak, which added 0.8 per cent, were enough to offset a sell-off in the property, utilities, and consumer staples sectors, the latter two both falling by more than 1 per cent. The likes of Mirvac Group (ASX: MGR) and shopping centre owner Scentre Group (ASX: SCG) were down more than 1 per cent each as the Reserve Bank of Australia (RBA) made the shock call to hold interest rates at 3.85 per cent. This was despite expectations from across the industry, including more than three-quarters of economists, who predicted at least a 25 basis point cut. The RBA blamed ‘volatile’ monthly inflation data and suggested that inflation would need to be ‘nailed’ before rates would be cut again. They did, however, make it clear that rates will be lower at some point in the future.

Platinum-L1 merger deal terms out, Kraken to add $2 to Origin, gold rally re-emerges

In positive news for shareholders, the separation of Octopus Energy’s Kraken platform is likely to add as much as 2 dollars per share to Origin Energy Limited (ASX: ORG)’s value as the UK-based company goes from strength to strength. Shares fell 1 per cent despite the news. Platinum Asset Management Limited (ASX: PTM) managed to post a 3 per cent gain after the company confirmed it had agreed on terms with L1 Capital for a merger that would take the combined business to 16.5 billion dollars. Platinum will acquire L1’s shares, and in consideration they will pay with PTMshares, with L1 to own 74 per cent of the combined entity after the deal. Performance fees will be split between shareholders. Regis Resources Limited (ASX: RRL) managed a 3.6 per cent gain as President Trump’s latest tariff announcements pushed investors back into the safe haven asset. Crypto firm DigitalX Limited (ASX: DCC) gained 34 per cent after confirming a 20 million dollar share placement with global crypto firms.

S&P 500, Dow Jones slip as tariff threats return, Tesla gains, copper surges

US markets were broadly flat, with the Dow Jones Industrial Average (INDEXDJX: DJI) dropping 0.4 per cent while the S&P 500 Index (NYSE: SPX) lost marginally and the NASDAQ Composite Index (NASDAQ: IXIC) gained, following a 1 per cent gain from Tesla Inc (NASDAQ: TSLA). All eyes are back on President Trump, who has threatened new tariffs across the globe, but with a particular focus on Asia, where we may see greater volatility in coming weeks. The price of copper in the US gained 13 per cent after he announced a potential 200 per cent tariff on imports in an attempt to protect local buyers and producers. Despite suggestions of the opposite, Europe may be facing a hike in tariffs as negotiations have stalled and the bloc continues to charge large US tech firms for multiple law breaches.