The Australian share market finished session lower on Wednesday, 06 April 2022, as investors increasingly worried about expected aggressive U. S. monetary tightening leading to an economic slowdown. Meanwhile, concerns about mounting economic sanctions on Russia and the spreading COVID-19 outbreaks and lockdowns in mainland China also undercut market sentiment.
At closing bell, the benchmark S&P/ASX200 dropped by 37.77 points, or 0.5%, to 7,490.09. The broader All Ordinaries index fell 44.87 points, or 0.57%, to 7,788.34.
Trading got off to a downbeat start, on tracking decline in Wall Street overnight on following hawkish comments made Tuesday by Federal Reserve Governor Lael Brainard which sparked fears over the impact of the Fed's monetary tightening.
At a conference on Tuesday, Fed Governor Lael Brainard said she expects methodical interest rate increases and rapid reductions to the Fed's nearly $9 trillion balance sheet to bring U. S. monetary policy to a "more neutral position" later this year, with further tightening to follow as needed.
Kansas City Fed President Esther George, a voting member of the Federal Open Market Committee, also in remarks on Tuesday supported a rapid run-off of the Fed balance sheet, and said as well that "50 basis-points is going to be an option that we'll have to consider."
Shares of tech companies declined on tracking fall in US peers amid concerns about accelerated interest rate hikes. Novonix and Block Inc both slumped around 6.9 percent
Shares of financials were up, with the big four banks being notable gainers amid speculation the Reserve Bank of Australia will lift the cash rate by 15 bps as early as June.
Coal miners stood out on Wednesday, following reports the European Union is considering a ban on Russian coal imports due to its invasion of Ukraine. Russia accounts for over 10 per cent of the world's coal trade. Whitehaven Coal (WHC) rose by 5.5% and New Hope (NHC) by 6.9%.
CURRENCY NEWS: The Australian dollar changed hands at $0.7581 after a recent drop from above $0.762.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU