Australia: Shares snap winning streak ahead on US inflation data

AUSTRALIAN shares fell on Thursday (Nov 10), snapping a four-day winning streak, led by commodities and technology stocks amid fresh Covid-19 curbs in China, while investors maintained a cautious stance ahead of key US inflation print due later in the day.

The S&P/ASX 200 index slipped 0.5 per cent to 6,964 at the close of trade. The benchmark closed 0.6 per cent higher on Wednesday.

The broader Australian market tracked Wall Street lower as investors focused on the upcoming inflation data that could provide clues on the US Federal Reserve’s rate-hike trajectory.

“We’d need to see a much lower inflation print before being able to say with confidence that the big hikes are truly behind us,” said Matthew Simpson, a senior market analyst with City Index.

To recall, in the 12 months through September, the US consumer price index (CPI) increased 8.2 per cent after rising 8.3 per cent in August.

“The bigger risk here is that CPI could surprise to the upside today – and that will see expectations rise once more for a 75 basis point Fed hike,” added Simpson.

A top Australian central banker said they might be able to pause raising domestic interest rates soon, but more evidence was needed that demand was slowing as desired.

Energy stocks fell 2.1 per cent, following a dip in oil prices, on concerns that fresh Covid-19 restrictions in China will impact fuel demand.

Heavyweights Woodside Energy and Santos fell 2.2 per cent and 1.6 per cent, respectively.

SEE ALSO

Australia: Banks, miners drag shares down ahead of US inflation data

Shares of Origin Energy jumped 34.8 per cent after the country’s No 2 power producer and energy retailer received a buyout offer from a consortium, valuing it at US$11.83 billion.

Mining fell 1.3 per cent after iron ore prices slumped on demand woes from top consumer China, with heavyweights BHP Group, Rio Tinto and Fortescue Metals Group falling between 0.5 and 2.2 per cent.

Tech stocks tracked sharp overnight losses on Wall Street to drop 1.9 per cent.

ASX-listed shares of Block plunged to close 6.2 per cent lower.

Financials fell 0.9 per cent with the “Big Four” banks losing between 0.3 and 2.2 per cent.

New Zealand’s benchmark S&P/NZX 50 index slipped 0.5 per cent to finish the session lower at 11,091.93 points. REUTERS