ANZ has seen half-year net profit surge, the ASX has fallen, while the US Federal Reserve is set to raise US interest rates again at this week's meeting.
ANZ said after tax profit for the six months to the end of March increased by 20 per cent from the same time last year, to $3.5 billion.
Cash profit, the bank's preferred measure rose 4 per cent to $3.1 billion.
Investors will get a dividend payout of 72 cents a share for the half, fully-franked.
ANZ chief executive officer Shayne Elliott said it was an important half year for the overhaul of the bank's business.
"While still in soft launch, the first 'savings and transact' product on ANZ Plus, a proposition focused on helping customers better manage their financial wellbeing, is tracking well and will become the core deposit and transaction product offered to new customers."
Mr Elliott also acknowledged the rise in interest rates was "going to hurt some people."
"But at this point, people are well prepared for it."
Big four lift mortgage rates
NAB said borrowing costs on variable rate mortgages would rise by a quarter of a percentage point.
It has also lifted rates on some savings accounts.
The changes will start from May 13.
The Reserve Bank raised the official cash rate by 25 basis points to 0.35 per cent yesterday to rein in spiralling prices.
It forecast that underlying inflation could reach 4.75 per cent by the end of the year and the official cash rate could reach 2.5 per cent to curb rampant price rises.
Within hours, the Commonwealth Bank, ANZ and Westpac, announced they would be passing on the rate increase in full to mortgage borrowers.
The next official rate rise is expected next month with Westpac chief economist Bill Evans predicting the central bank could move by 40 basis points (0.4 per cent), as opposed to the standard 25 basis points (0.25 per cent).
"We continue to disagree with the Board's base case and the market's expectation that the tightening cycle will extend into the second half of 2023."
The Australian dollar was up 0.2 per cent at 4:45pm AEST to 71.07 US cents.
Oil prices rose during the day after falling overnight with Brent crude up 1.2 per cent to $US106.27 a barrel, while spot gold fell almost 0.2 per cent to $US1864.68 an ounce.
ASX fades after good start
The local share market gained ground in early trade boosted by the banks, but the gains faded over lunchtime.
By the close, the All Ordinaries index finished down 0.3 per cent to 7,565, and the ASX 200 fell nearly 0.2 per cent to 7,305.
The big four banks were among the best performers after they all raised interest rates less than 24 hours after the Reserve Bank 0.25 per cent increase yesterday.
National Australia Bank (+1pc) led the charge, followed by Westpac (+0.7pc) , ANZ (+0.4pc) and the Commonwealth Bank (+0.7pc).
Big miners, BHP (-0.6pc) and Rio Tinto (-0.7pc) weighed on the market as iron ore prices fell.
Fortescue Metals (-2.4pc) said it would make a final investment decision by 2023 on its first green hydrogen project.
Also going down on the benchmark index were vehicle parts maker ARB Corporation (-11.2pc) and buy now, pay later firm Zip (-10.8pc), and retirement homes company Lifestyle Communities (-7.8pc).
The best performers on the ASX were financial services platform HUB 24 (+3.9pc), packaging manufacturer Orora (+3.4pc) and Virgin Money (+3pc).
JB Hi-Fi sales
Electronics retailer JB Hi-Fi shares dropped 4.8 per cent to $49.73, because it did not provide a profit forecast in a trading update, due to COVID-19 uncertainties.
It saw sales rise 11 per cent over the third quarter of the 2022 financial year because of "heightened customer demand and strong sales growth momentum" according to the retailer.
Retail sales
Meanwhile, nationwide retail sales rose for the third month in a row in March as people restocked their pantries after the east coast floods in late February and early March.
The Bureau of Statistics said that sales jumped 1.6 per cent over the month to a record $33.6 billion, and they were up 9.4 per cent from a year ago.
Every state and territory saw a rise in sales except South Australia.
Queensland (+3.4pc) and NSW (+1.8pc) had the largest increase in sales following the recovery from the floods and extreme rainfall.
People shopped for household goods (+3.4pc) and at department stores (+4pc), ate out (+2pc) and bought clothes and shoes (+0.5pc).
Fed poised for 50bp rate rise
The US central bank kicked off its two day policy meeting overnight.
Traders see a 50-basis point interest rate increase as virtually a sure bet with a 99.9 per cent chance of a lift in borrowing costs after recent comments from US Federal Reserve officials including chairman Jerome Powell.
Wall Street rises
US stocks ended higher after a choppy session in which the major indexes fluctuated between gains and losses as the Federal Reserve's meeting got underway.
Investors bought financial and technology stocks ahead of Thursday's expected increase in official interest rates by the Fed.
The Dow Jones index rose 0.2 per cent to 33,129, the S&P 500 0.5 per cent to 4,176, and the Nasdaq rose 12,564.
Nine of the major S&P500 sectors gained ground, led by energy stocks and financials.
In London, the FTSE 100 rose 0.2 per cent to 7,561, the DAX in Germany rose 0.7 per cent to 14,039, and the CAC 40 in Paris rose 0.8 per cent to 4,932.
Oil prices fell, with Brent crude down 1.5 per cent to $US105.96 a barrel.
Spot gold gained 0.3 per cent to $US1867.78 an ounce.
China caffeine withdrawal for Starbucks
Starbucks revenue beat estimates as higher US sales offset declines in China, caused by strict COVID-19 lockdowns.
Chinese same store sales plunged by 23 per cent as the country reimposed lockdowns after coronavirus outbreaks.
Global same store sales increased by 7 per cent over the quarter, fuelled by strong growth in the US.
Starbucks shares fell 1.4 per cent to $US74.33.
