Source : Perth Now news
Australia’s share market is on the back foot after Wall Street’s record-breaking rally ran out of steam, with miners weighing heavily on the leading indices.
The S&P/ASX200 index fell 44.3 points by midday on Thursday to be down 0.51 per cent to 8683.4, as the broader All Ordinaries lost 47.9 points, or 0.54 per cent, to 8846.7.
“Recent gains in global share markets stalled overnight, with losses across the US, Europe and much of Asia as investors paused after a strong run higher in risk assets,” Westpac economist Ryan Wells said.
Cautious meeting minutes from the US Federal Reserve Open Market Committee pointed to further US interest rate hikes ahead, dimming the outlook for risk assets.
“Oil prices remained elevated amid competing signals from the Middle East, with recovering crude flows offset by reports of increased attacks on shipping through the Strait of Hormuz,” Mr Wells said.
Brent crude edged above $US101 a barrel, lifting Woodside, Santos, Viva and Ampol, while uranium and coal stocks fell behind.
The raw materials sector tumbled 2.6 per cent, tracking with similar falls in mega-miners BHP, Rio Tinto and Fortescue, as the latter’s iron ore shipments slumped by six per cent in the third quarter.
Gold stocks were a sea of red, haemorrhaging value as the firming outlook for US interest rates hit precious metals.
Spot gold is trading at $US4105 ($A5901) an ounce, after dipping to more than two-month lows overnight.
Financials inched up 0.4 per cent, with modest rebounds from the major banks after selling off on Wednesday, while major insurers posted healthy gains.
Consumer-facing stocks performed well, with the defensive staples sector up 1.5 per cent, while cyclicals gained 0.9 per cent with strong leads from Woolworths, Coles, The Lottery Corporation, and Light & Wonder.
Real estate, communications and utilities all advanced between 0.5 per cent and 0.7 per cent.
The housing market continues to cool, with realestate.com.au owner REA Group recording a two per cent listing slump in the third quarter compared to the year before.
“Further price falls are likely over the coming months as last week’s interest rate rise, tax changes and the cumulative impact of higher borrowing costs weigh on buyer demand,” REA’s chief executive Cameron McIntyre told the company’s annual general meeting.
In company news, construction materials and services provider Maas tanked by more than 24 per cent following reports that the hyped data centre play Firmus – Maas holds a 3.2 per cent stake – could cut its offer price ahead of its October 23 float due to tepid global interest.
Fast fashion jewellery retailer Lovisa is on the hunt for a new chief financial officer after Chris Lauder gave his six months’ notice.
The Australian dollar was buying 69.57 US cents, down from 69.70 US cents on Wednesday at 5pm.
