Australian Shares Slide as RBA Holds Rates Steady; NZ Commerce Commission Files Case Against Woolworths

MT Newswires Live12-10

Australian shares slid on Tuesday's close after the country's central bank kept the cash rate unchanged while softening its tone on inflation.

The S&P/ASX 200 Index fell 0.4% to close at 8,393.

In domestic news, The Reserve Bank of Australia (RBA) decided to leave the cash rate unchanged at 4.35% at its final meeting this year.

Markets expected a steady outcome, as the central bank consistently said that underlying inflation remains too high for near-term rate cuts, Reuters reported.

The dovish pivot has paved the way for a February rate cut button pending a further softening in the incoming data, Reuters added.

Meanwhile, both Australian business confidence and conditions fell sharply in November, pointing to a softer expansion in the final months of 2024, according to a survey by National Australia Bank.

Australia's 13-industry aggregate business turnover measure declined 0.6% month on month in October following a 0.2% increase in September, according to data from the Australian Bureau of Statistics.

In corporate news, New Zealand's Commerce Commission will file criminal charges against Woolworths Group's (ASX:WOW) unit Woolworths NZ and two other supermarket brands for their alleged inaccurate pricing and misleading specials.

For its part, Woolworths New Zealand's Managing Director, Spencer Sonn, said the brand has a refund policy to address any discrepancies between the shelf labels and what customers pay at the checkout counter, as well as introducing electronic shelf labels in stores.

Insurance Australia Group (ASX:IAG) received a statement of claim from law firm Slater and Gordon for a policyholder class action in the Supreme Court of Victoria against its units, Insurance Australia and Insurance Manufacturers.

The lawsuit filed in May alleged that the units falsely advertised loyalty discounts to its long-term customers between 2018 and 2024 while charging them inflated base premiums. The insurer's shares slid 2% on close.

Perpetual Limited (ASX:PPT) was notified by the Australian Taxation Office (ATO) that the cash proceeds from the proposed sale of its wealth management and corporate trust businesses will be taxed to shareholders. Perpetual's shares fell 8% at market close.

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