ASX edges lower ahead of US Fed rate decision
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The news: The Australian sharemarket finished down after a mixed session that saw energy gain off the back of rising oil prices.
The numbers: The benchmark ASX 200 fell 0.1% to 7,695.8, with eight out of 11 sectors finishing in red.
The worst performing sector was IT, down 0.49%, followed by utilities (-0.48%) and consumer staples (-0.43%). IT companies lost ground today including Wisetech (-0.2%), Xero (-1.15%) NextDC (-0.26%), Altium (-0.4%) and Technology One (-0.82%).
Also on the losing side was South32 that fell 4.49% to $2.98 as it withdrew its manganese guidance due to Tropical Cyclone Megan suspending operations. The company’s share price has been falling since it announced the suspension on Monday.
Meanwhile, Amcor shares fell 3.39% after it announced that its long-serving CEO Ron Delia would retire in April after nine years at the helm.
Sonic Healthcare fell 0.35% after it announced that it had acquired Swiss lab group Dr Risch in a $202 million deal.
Perseus Mining shares also fell, down 3.85%, after it increased its takeover bid for OreCorp that saw its stock rise 2.68% by the end of the trading day.
Energy was the best performing sector, gaining 0.6%, followed by telecommunication services (0.29%) and consumer discretionary (0.02%). During the trading day energy majors today enjoyed lifts stemming from global oil prices reaching their highest level since October 2023 due to Russian supply concerns.
However, by market close majors Santos fell -0.27% but Woodside rose 0.26%. Ampol finished 1.23% higher while coal miners Whitehaven Coal and New Hope Corporations gained 2.66% and 1.96%, respectively.
Elsewhere, ASX-listed minnow Toys “R” Us shares rose 8.33% after announcing that it had secured $5 million in funding from US fund manager C/M Capital Partners and was set to acquire Riot Art and Craft.
The context: Investors stayed cautious ahead of the US Federal Reserve’s latest monetary policy announcement that is set for 5am AEDT on Thursday.
Tonight, UK CPI figures will be released ahead of its monetary policy announcement on Thursday.
Thursday will also see the release of the latest unemployment figures for Australia and the US.
