The Australian market closed lower on Wednesday, 17 March 2021, snapping three days of winning streak, as investors elected to book recent profit on caution ahead of the outcome of a U. S. Federal Reserve policy meeting, with some investors expecting the central bank to signals to raise interest rates sooner than expected.
At closing bell, the benchmark S&P/ASX200 fell 31.90 points, or 0.47%, to 6,795.23. The broader All Ordinaries shed 30.98 points, or 0.44%, to 7,048.
Australian stocks opened lower as a cautious mood prevailed with investors awaiting the Fed's latest economic growth and interest rate forecasts as well as a press conference by Chairman Jerome Powell. Market participants were speculating Fed officials may signal a rate hike in 2023 amid growing signs of global economic recovery from the fallout of the coronavirus pandemic and progress in COVID-19 vaccine rollouts.
The Fed earlier projected interest rates would remain around zero percent through 2023. If the Fed signals such a shift, U. S. yields would rise and negatively affect stock markets.
Energy stocks were lower, hit by a fall in oil prices. Oil Search declined nearly 3%, while Santos ended 1.2% lower.
Shares of miners were weaker on lower copper prices, with global miners BHP Group and Rio Tinto each closing down over 1%.
Shares of tech and telco firms tracked their US counterparts higher as investors awaited news from the US Fed meeting, with Telstra gaining 2.2 per cent to A$3.19 and News Corp's ASX depository receipt touching a record high A$32.59.
CURRENCY NEWS: The U. S dollar traded near flat at 91.860 against a basket of its peers, retreating from an earlier level at 91.968. The Australian dollar slipped 0.14% to $0.7734.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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