Australia: Shares track Wall Street lower ahead of Federal Reserve rate decision
AUSTRALIAN shares fell on Wednesday, following a weak finish on the Wall Street overnight, though the pace of sell-off was limited as investors awaited the outcome of the US Federal Reserve meeting.
The S&P/ASX 200 index fell 0.5 per cent in early trade, extending losses to a fourth straight session.
The benchmark fell 3.6 per cent on Tuesday. Analysts largely expected a 50 basis point hike in the Fed meeting later in the day but views that a 75-bp hike was on the table have been growing after Friday’s higher-than-expected US retail inflation data for May.
Tech stocks fell 1.8 per cent to lead losses among sub-indices. Megaport was the biggest tech decliner, falling 5.1 per cent, followed by ASX-listed shares of Block Inc dropping 5.2 per cent. Appen retreated 3 per cent.
Iron ore prices also extended losses, as a fresh Covid-19 outbreak in China and fears of a possible lockdown clouded demand prospects in the world’s top steel producer.
Miners eased 0.7 per cent, with two of the big three miners, Rio Tinto and BHP Group losing 0.3 per cent and 0.5 per cent, respectively, while Fortescue rose 0.8 per cent.
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Financials bucked the trend to climb 0.7 per cent, with the “Big Four” banks gaining between 0.2 per cent and 0.7 per cent.
Gold and energy stocks fell 1.3 per cent and 1.1 per cent, respectively, on fears that the Fed will surprise markets with a higher-than-expected interest rate hike.
Among energy stocks, heavyweights Woodside Energy and Whitehaven Coal fell 1 per cent and 1.3 per cent, respectively.
New Zealand’s benchmark S&P/NZX 50 index fell 0.4 per cent to 10,640.94. REUTERS
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