ASX drops 1.4% on rate cut risk
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The news: The Australian sharemarket has fallen sharply as investor confidence in US rate cuts faltered ahead of upcoming US Federal Reserve meeting minutes. The benchmark ASX 200 sank more than 1.4% to 7,523.20 as all 11 sectors finished in the red, led by interest rate-sensitive IT (-3.0%) and real estate (-2.3%) stocks.
The numbers: The Australian dollar lost more than a percentage point against the greenback and is buying 67.6 US cents. After selling off overnight amid ongoing conflict in the Red Sea, the oil price has now stabilised. Brent crude futures are trading around USD75.77 a barrel while West Texas is trading at roughly USD70.21.
The context: Key US job openings data will be released overnight, ahead of Federal Reserve Meeting minutes due at 6am AEDT. Markets are anticipating a more hawkish tone from the US central bank, after betting big on a dovish pivot last month and seeding a December rally in equities.
