Australia: Shares end subdued ahead of inflation data, Fed decision
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AUSTRALIAN shares closed little changed in range-bound trade on Monday (Jul 25) as investors stayed on the fence ahead of local inflation data and the US central bank’s policy decision this week.
The S&P/ASX 200 index ended 0.02 per cent lower at 6,789.90.
“The sentiment is weak and uncertain. The turnover is very low so far and this indicates that even global traders are waiting for US to set the market sentiment for the week,” said Mathan Somasundaram, CEO of Deep Data Analytics.
The US Federal Reserve’s 2-day policy meeting will conclude on Wednesday and markets are anticipating a 75 basis points (bps) rate hike.
Meanwhile, Australia’s second-quarter consumer price data — due on Wednesday — is also on investors’ radar. Economists polled by Reuters see year-on-year headline inflation hitting 6.2 per cent, the highest since 1990.
The Reserve Bank of Australia has already raised rates for 3 months in a row and governor, Philip Lowe, reiterated his view last week that further hikes would be necessary to keep inflation in check.
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The domestic technology sub-index shed 1.5 per cent to become the top percentage loser after major Wall Street indexes closed lower on Friday.
EML Payments plunged 22.2 per cent, while Australia-listed shares of Block fell 2.1 per cent.
Energy stocks fell 0.8 per cent as oil extended losses on concerns of weak demand.
Miners climbed 1.2 per cent following a rally in iron ore prices.
Diversified miner South32 rose 0.9 per cent after posting a 3 per cent rise in its fourth-quarter metallurgical coal output, while also joining global miners BHP Group and Rio Tinto to flag labour shortages.
BHP and Rio Tinto climbed 1.6 per cent and 0.9 per cent, respectively.
Gold stocks advanced 1.3 per cent as bullion steadied after logging early losses.
In New Zealand, the benchmark S&P/NZX 50 index ended 0.6 per cent lower at 11,198.68. REUTERS
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