The Australian share market has finished lower after hawkish Reserve Bank minutes indicated it might be inclined to raise interest rates again next month.
The benchmark S&P/ASX200 index on Tuesday finished down 14.7 points, or 0.2 per cent, to 7,283.8, while the broader All Ordinaries fell 14.9 points, or 0.2 per cent, to 7,496.7.
The pullback shows that investors are questioning whether they want to be positioned at these heights following the release of the Reserve Bank minutes, said City Index senior market analyst Matt Simpson.
The ASX200 dropped 22 points in the space of 18 minutes immediately after the release of the minutes, which showed the RBA had debated raising rates at its July 4 meeting before deciding to leave them on hold until next month when they would have more data on inflation, the global economy, the labour market and household spending.
"The RBA minutes have served as a timely reminder that the RBA could still hike at their next meeting depending on which way the incoming data swings and its impact on staff forecasts," Mr Simpson said.
"Of particular interest will be Thursday's employment report and the monthly and quarterly inflation reports next week where hot prints keep the pressure on for another hike."
Seven of the ASX's 11 sectors finished lower, with the interest rate-sensitive property sector the biggest loser, dropping 1.4 per cent.
Lendlease fell 4.9 per cent to $8.13 amid reports that the property giant would be trimming 10 per cent of its global workforce, or 740 roles.
The heavyweight mining sector closed down 0.6 per cent, with BHP dropping 1.0 per cent to $44.82 and Rio Tinto subtracting 0.8 per cent to $116.88, although Fortescue added 1.0 per cent to $22.71.
Syrah Resources was the biggest loser among the ASX200, dropping 16.3 per cent to 74.5c after the graphite and battery anode company reported lower second-quarter sales to China amid high inventory conditions.
Among blue chips, Woolworths dropped 1.0 per cent to $38.67 and Telstra fell 1.9 per cent to $4.23.
Woodside closed down 1.1 per cent to $35.55 after the energy giant announced delays and cost blowouts at its Sangomar oil and gas project off the coast of Senegal.
All the Big Four banks were higher with ANZ gaining 1.7 per cent to a five-month high of $24.95, NAB up 2.0 per cent to a nearly three-month high of $27.67, Westpac advancing 0.8 per cent to $21.60 and CBA finishing up 0.7 per cent to a five-month high of $102.57.
In health care, Ansell plunged 14.0 per cent to a one-year low of $23.88 after the global glove-maker said its full-year profit would be at the bottom end of guidance and it expects its 2023/24 earnings to be even lower as it works through an inventory glut.
In response Ansell is slowing production and reducing manufacturing employee numbers while accelerating its digitisation strategy.
Invocare fell 3.7 per cent to $12.27 after the funeral care home operator said it had not yet been able to agree on terms with private equity firm TPG Capital Global on a potential takeover deal.
The Australian dollar was buying 68.21 US cents, from 68.04 US cents at Monday's ASX close.
ON THE ASX:
* The S&P/ASX200 index finished Tuesday down 14.7 points, or 0.2 per cent, at 7,283.8.
* The All Ordinaries dropped 14.9 points, or 0.2 per cent, to 7,496.7.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 68.21 US cents, from 68.09 US cents at Friday's ASX close
* 94.46 Japanese yen, from 94.26 Japanese yen
* 60.63 Euro cents, from 60.60 Euro cents
* 52.12 British pence, from 52.05 pence
* 108.01 NZ cents, from 107.31 NZ cents.
