Market Wrap / Tuesday tremors

The Australian Sharemarket rallied this afternoon following the RBAs decision to lift the interest rate by 0.25 points to 4.1%. The S&P/ASX200 finished the day up 0.36% to 8,614.30 points following the second consecutive rate rise. 

The split decision was largely driven by rising oil prices and the inflationary pressure from higher energy costs. That focus remains front of mind for markets, with oil prices climbing 2.3% today after their first decline in nearly a week as investors assessed supply risks in the Middle East.

But back home, energy headlines were dominated by the coal producers following New Hope Corporation's half yearly results which saw a decline in net profit, sending the share price down 6.4%. Yancoal also suffered, dropping 4.9% over the day. 

Tech was also sold off amid the RBA call, as the interest rate sensitive sector dropped 1.2%. Heavyweights Wisetech and Xero slid 3% and 1.7% respectively. 

Conversely, materials gained, led by Rio Tinto after the United States Forest Service approved a land exchange paving the way for the Resolution Copper Mine. The iron and copper ore miner climbed 0.3%, 

In other company news, Pepper Money dropped 14.9% after Challenger cut its takeover bid to $2.25 from $2.60, pointing to worsening market conditions.

Tonight, US core PPI data is released ahead of the Fed's decision on Wednesday.