ASX falls with all 11 sectors finishing in the red
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The news: The Australian sharemarket dropped on Tuesday, following a shaky session overnight in Europe as Germany's narrow recession miss failed to lift investors spirits. The benchmark ASX 200 fell 1.09% to 7,414.80, with losses across all 11 sectors. The All Ordinaries lost 1.08%. Donald Trump cruised to a win the first 2024 Republican presidential nomination contest in Iowa, gaining more caucus votes than his competitors combined.
The numbers: Utilities, materials and energy stocks led the losses, dropping 1.8%, 1.5% and 1.5% respectively as prices for natural gas, iron ore and precious metals all lost ground. Oil was mixed, as markets weighed Middle East tensions against US supply issues, with Brent futures gaining slightly to USD77.96 a barrel while West Texas lost ground to trade at USD72.57 a barrel.
The Australian dollar fell below its 2024 trading range and is buying 66.2 US cents, hanging on just above its December 2023 open level.
The context: US markets were closed overnight, but S&P500 futures shed 0.4% during the Asia session as Fed fund futures fell, hinting at a tempering of US rate cut expectations.
The Republican nomination race will move to New Hampshire next for a 23 January vote, and Trump's potential candidacy is expected to drive volatility in markets, Reuters reports. China's statistics bureau will publish 2023 industrial production figures tomorrow, along with GDP and retail sales data.
The source: Reuters
