RBA and banks push ASX lower

The S&P/ASX 200 (ASX: XJO) (Index: ^AXJO) tumbled almost 1% after the RBA’s minutes failed to show any inspiration of an aggressive easing bias from the central bank.

AMP Capital’s  (ASX: AMP) director of investment strategy and chief economist, Shane Oliver, said “the tone of the minutes suggest it’s still quite relaxed about things, so maybe the share market was hoping for something signalling aggressive easing bias”.

The RBA also said “China’s economic activity appeared to be expanding at a steady pace” and believed that “mining investment was near its peak” and would “probably remain at a high level for the next year or so”.

However, Mr Oliver said the tone of the message delivered by the RBA was “more relaxed than I would be and more relaxed than recent investor nervousness would suggest”. Shareholders have echoed the same result, sending banking shares down at least 1% with the NAB (ASX: NAB) and Westpac (ASX: WBC) the worst affected, down 1.64% and 1.51% respectively.

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Motley Fool contributor Owen Raszkiewicz does not have a financial interest in any of the companies mentioned in this article.

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