ASX Slips 0.5 Per Cent Amid Fed-Rate Jitters

Australian Financial Review2022-12-06

Australian shares opened Tuesday trade down 0.5 per cent to 7,289.2 after US stocks were hit by Fed-interest rate rise jitters.

The S&P 500 fell 1.8 per cent as of 4 pm New York time afterservices data was stronger than expected, fuelling speculation the Federal Reserve will keep its policy tight to tame stubborn inflation.

Locally, interest-rate-sensitive tech stocks bore the brunt of the declines, down 2.3 per cent. Energy stocks fell 1.3 per cent as West Texas Intermediate futures shed 3.8 per cent to settle below $US77 a barrel after earlier topping $US82 on Monday.

Communication services and industrials were up around 0.3 per cent.

Gold miners St Barbara and Ramelius Resources led the decliners, both down around 6.4 per cent. Spot gold fell 1.7 per cent to $US1,766.73 an ounce as of 2:25 pm in New York as Treasury yields and the dollar rose.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Bull1973
    2022-12-06
    Bull1973
    Ok
  • Goupppppppp
    2022-12-06
    Goupppppppp
    Ok
  • Gackky
    2022-12-06
    Gackky
    wow
  • HLPA
    2022-12-06
    HLPA
    The Australian stock market is always the first to react to events and news which take place over the US stock markets the night before. This slip of 0.5% is slightly too much, I think, as 89% of analysts expect a rate hike of 50 basis points on Dec 14th. The worry here is that the FED would continue its hawkish stance an inflict a 75 points pain again after the release of PMI numbers indicating that the fight against inflation is not done yet. Australian stock prices have been trading sideways at their lows and this will be a great opportunity ro pick up stocks  like ANZ, BLD, CGF, STO and WDS. 
  • Sephiro
    2022-12-06
    Sephiro
    Ok
  • Worpeng2002
    2022-12-06
    Worpeng2002
    Ok
Leave a comment
8