Australia: Miners, energy stocks drag shares lower as investors assess Fed comments

AUSTRALIAN shares inched down on Tuesday, as solid gains in banking and healthcare stocks were offset by losses in heavyweight miners and energy firms, while investors gauged U.S. Federal Reserve comments on interest rate hike path.

The S&P/ASX 200 index was down 0.1 per cent to 7,136.60 by 0018 GMT. The benchmark ended 0.2 per cent lower on Monday. Investors are assessing comments from Fed officials that indicated the U.S. central bank could slow down its rate hikes, improving risk sentiment across Wall Street indexes overnight and global markets.

In Australia, a G20 summit meeting between Prime Minister Anthony Albanese and Chinese President Xi Jinping – the first meeting between leaders of the two nations after years of strained relations – will also be on investors’ radar.

China earlier in the week eased off some of its Covid-19 restrictions, sending industrial metals prices higher and improving prospects for Australia’s heavyweight mining sector, which exports heavily to China.

Miners, which gained 7.6 per cent over the prior two sessions, declined 2 per cent on Tuesday. Mining giants BHP Group, Rio Tinto and Fortescue Metals Group lost between 1.9 per cent and 2.5 per cent. Energy stocks fell 1.5 per cent after oil prices slipped, as surging Covid-19 cases in China dampened hopes of a swift reopening of the world’s biggest crude importer’s economy. Meanwhile, shareholders in Australia’s top power producer, AGL Energy approved all four directors proposed by top shareholder Mike Cannon-Brookes.

Financials were up 0.8 per cent. Commonwealth Bank of Australia jumped as much as 2 per cent after the country’s largest lender reported a better-than-expected cash earnings for the first quarter.

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Australia: Shares hover at 5-month high; miners soar as China eases curbs

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Country’s top fertiliser maker, Incitec Pivot was up 10 per cent on strong fiscal 2022 results and receiving offers for its ammonia manufacturing facility in Louisiana, making it the top gainer on the benchmark. In New Zealand, the benchmark S&P/NZX 50 index was up 0.25 per cent at 11,259.81. REUTERS