Australia: Shares drop as investors digest Federal Reserve minutes; jobs data in focus
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AUSTRALIAN shares opened lower on Thursday tracking overnight Wall Street losses, after the US Federal Reserve minutes revealed more rate hikes in the pipeline amid inflationary pressures, while investors awaited domestic employment data.
The S&P/ASX 200 index fell 0.4 per cent to 7,102.8 by 0022 GMT and was on track to snap a three-day rally. It ended 0.3 per cent higher on Wednesday.
The July employment figures will give investors an insight into the health of Australia’s labour market and clues on the central bank’s future pace of policy tightening.
Markets digested Fed minutes that showed policymakers were committed to raising rates as high as necessary on “little evidence” that inflation pressures were easing.
Gold stocks dropped 3.6 per cent on weak overnight bullion prices weighed on the local bourse.
Gold miners Regis Resources and SSR Mining were the top losers on the sub-index, down 6.8 per cent and 4.3 per cent, respectively.
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Tech stocks fell 1.8 per cent, tracking losses in their US peers. However, software services provider Iress bucked the trend and rose 3 per cent after posting strong results.
Australia’s energy index was up about 1 per cent, as crude prices recovered on strong export demand.
Among individual stocks, Origin Energy slumped up to 6.6 per cent in its worst day since June 1, after warning of uncertainty around its fiscal 2023 earnings.
Charter operator Alliance Aviation Services slipped 6.8 per cent after the country’s competition regulator raised concerns on its proposed buy-out by Qantas Airways.
Across the Tasman sea, Reserve Bank of New Zealand Governor Adrian Orr said the central bank was confident domestic inflation was now tracking lower, a day after it raised cash rate by half point.
New Zealand’s benchmark S&P/NZX 50 index dropped 0.4 per cent to 11,807.07.
Auckland International Airport shed about 4 per cent after recording a second straight year of loss, shedding the most on the index. REUTERS
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