Australian market slips slightly as rate hike and global tensions weigh on sentiment

Australia?s S&P/ASX 200 slipped 17 points, or 0.2%, to finish at 8,680 on Tuesday, marking its second straight day of losses. The decline came after the Reserve Bank of Australia raised interest rates again?its third consecutive hike?to tackle persistently high inflation, which has been further pressured by rising fuel costs linked to Middle East tensions.

Investors remained cautious ahead of upcoming trade data for March, especially after February showed stronger exports but weaker imports. However, losses were partly limited as consumer spending in Australia saw its fastest growth in over two years, continuing a steady upward trend.

Globally, sentiment found some support as U.S. stock futures moved higher, with markets closely watching developments in the Middle East.

Most sectors ended lower, particularly industrials, healthcare, and consumer goods. Major banks also declined, while stocks like Sonic Healthcare, Lynas Rare Earths, and Northern Star Resources were among the biggest losers.

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