ASX 200 hits 50-day low, Aussie keeps head above US64c

The news: The ASX 200 lost 1.37% to close at 7,065.20 on Thursday, a new 50-day low, while the All Ordinaries lost 1.29%. The Aussie dollar held its head just above 64 US cents.

The numbers: All sectors lost ground. Energy was the biggest loser, shedding losses 1.96%. Woodside lost 2.54% to $36.06 while New Hope dropped 1.3% to $6.07. Santos was also down 1.3%. Financials followed, down 1.70%. Westpac shed 2.23%, ANZ 2.0%, NAB 1.97% and CBA 1.73%. Materials and Industrials were down 1.35% and 1.60% respectively. Transurban lost 3.66% after the ACCC opposed its proposed acquisition of Melbourne’s Eastlink toll road, saying it will lessen competition in the sector.

The context: The Federal Reserve early on Thursday left interest rates unchanged, as widely expected, but the rhetoric from Fed chairman Jerome Powell was more hawkish than anticipated. The Fed indicated it was pencilling in one more rate hike this year as it works to contain inflation, and just half a percentage point worth of rate cuts next year, instead of the full point previously forecast. The Bank of England and Sweden’s Riksbank will meet later on Thursday, followed by the Bank of Japan on Friday.