ASX falls after Fed goes quiet on timing of rate cuts
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The news: The Australian sharemarket lost ground for the second day in a row, following a slide on Wall Street after US Federal Reserve minutes gave no indication of a timeline for interest rate cuts in 2024. The benchmark ASX 200 lost 1.39% to close at 7,494.10, led by a -1.0% rout in consumer discretionary stocks and despite oil prices helping lift energy stocks 1.4%.
The numbers: The Australian dollar is lower against the greenback, but has rebounded to trade at 67.4 US cents after dropping as low as 67.0 US cents overnight. The US dollar has been gaining against most major currencies this week, as December's equities rally gave way to investor concerns about the timeliness and extent of US rate cuts in 2024.
Oil prices have risen between 3% and 4% amid a supply disruption at a Libyan oil field and escalating conflict in the Middle East. It comes after a blast killed almost 100 people at a memorial in Iran and an alleged Israeli drone strike assassinated a Hamas official in Beirut. Brent crude futures are trading at roughly USD$78.54 a barrel and West Texas intermediate futures are holding at USD73.10.
Bitcoin's price fell as much as 8.7% overnight to USD41,492 ($61,588) and is now trading at USD43,196 as regulators continue to mull the approval of Bitcoin ETFs in the US.
Coming up: US non-farm payroll and unemployment data is due overnight, with analysts expecting a slight improvement in employment conditions. The Australian Bureau of Statistics will kick off its first data drop next Tuesday with monthly retail sales figures.
