Australia: Miners lift shares, investors digest Fed’s minutes
AUSTRALIAN shares were slightly higher on Thursday, boosted by a rebound in the heavyweight mining sector after sharp declines in the prior session, while investors digested the US Federal Reserve’s firm hawkish stance on taming inflationary pressures.
The S&P/ASX 200 index was up 0.4 per cent at 6,623.30, as at 0036 GMT. It ended 0.5 per cent lower on Tuesday.
Miners advanced nearly 2 per cent after a massive 5.6 per cent drop in the previous session, as weak commodity prices led to a sharp sell-off in iron ore giants- BHP Group, Rio Tinto and Fortescue Metals Group.
As China iron ore futures gained 1.8 per cent on Wednesday, the Australian mining triumvirate gained between 2 per cent and 3 per cent on Thursday, with Rio Tinto marking its biggest intraday jump since late April.
The Fed’s June meeting minutes showed officials rallied around an outsized rate hike, justifying the 0.75-percentage-point increase as near-term inflation outlook had deteriorated since their meeting in May.
The minutes however did not explicitly mention the risk of recession, and in fact Fed officials said they thought data showed U.S. was “expanding in the current quarter”, even though they acknowledged the downside risks.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Back in Australia, financials were slightly flat at 0.1 per cent, with all the top lenders eking out small gains.
Energy stocks added 0.4 per cent, even as Brent crude slumped to a 12-week low upon fears of a global recession, with sector major like Woodside Energy gaining 0.9 per cent, while Santos slipped as much as 2 per cent.
Gold shares were down 1.1 per cent, as appeal for the precious metal dampened following a strong US dollar, with Newcrest Mining trading flat.
New Zealand’s benchmark S&P/NZX 50 index fell 0.2 per cent to 11,123.12. REUTERS
Share with us your feedback on BT's products and services
