Stocks end the day down, amid concerns over future rate hikes
The S&P/ASX200 finished lower, dropping 97.20 points or 1.42%, to sit at 6,729.3 by close of trade.
It comes a day after the Reserve Bank of Australia announced its fifth monthly consecutive interest rate rise, and signalled more to come in the future.
Meanwhile, online employment marketplace, SEEK (ASX:SEK) remains caught in the headwinds, amid ongoing fears of a potential recession. Its shares were down by more than 2.3% at day’s end.
Aussie market remains down
Last Updated 3:45pm AEST
The S&P/ASX200 dropped 93.90 points or 1.38% to 6,732.60.
Information Technology remains the best performing sector, gaining 0.33% and rebounding from its recent declines.
Energy and Utilities remain the worst performing Sectors for the day.
One stock that has seen strong positive gains today is DGL Group (ASX:DGL), which was up more than 10%, to around AU$1.65 in late afternoon trading.
After heavy losses this year, sentiment may be shifting on the chemicals and logistics provider, on the back of recent acquisitions.
ASX down in afternoon trading
Last Updated 1:15pm AEST
The market continued tracking down in afternoon trading, after recovering somewhat from its morning losses.
The S&P/ASX200 was down 90.50 points or 1.33% for the day, sitting at 6,736.00 just after 1pm AEST.
Over the last five days, the index has lost 3.59% and over the last 52 weeks its fallen 10.55%.
Information Technology has been the best performing sector, increasing 0.12%, bouncing back from its recent decline. The sector is off 3.17% for the past five days.
Energy and Utilities have been the worst performing Sectors for the day.
Meanwhile, data released by the Australian Bureau of Statistics today, shows the national economy grew by a solid 0.9% in June, which lifted annual GDP growth to 3.6%
ASX opens lower, as further rate hikes loom
Last Updated 10:20am AEST
Shares fell across the market, following the Australian Reserve Bank’s (RBA) comments that further interest rates are in the offing, after it lifted rates for the fifth consecutive month yesterday.
The S&P/ASX200 was lower in the opening minutes of trading, dropping 22.10 points or 0.32% to 6,804.40.
Across the market, Consumer Staples has been the best performing sector. It is up 0.94% for the past five days.
The Utilities and Materials Sectors were the biggest losers, down 5.75% and 5.56% respectively.
Nine of 11 sectors were lower over the week.
Pre-market breakdown
Australian shares are set to open lower, with ASX futures down 0.88%, to 6,778.0 nearing 6:30am AEST.
It comes after yesterday’s market drop in the aftermath of the Reserve Bank (RBA) of Australia’s decision to raise interest rates for a fifth consecutive month, increasing the cash rate target by 50 basis points to 2.35%.
The market continues to take cues from RBA Governor, Philip Lowe, who has signalled further rate hikes ahead, as he works to return inflation to the 2–3 per cent range over time.
The S&P/ASX200 was down 25.70 points or 0.38%, and sitting at 6,826.50 by close of yesterday’s trading.
Overseas, Wall Street sustained losses, with major stock indices finishing in the red in overnight.
The Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 decreased 0.54%, 0.4%, and 0.72%, respectively. Like Australia, US market movements are being driven by the anticipation of further rate rises.
The Australian dollar was sitting near US67.30c at the local close, down around 1%.
Spot gold was sitting at $US1,701, down 0.74% approaching 7am AEST. Iron ore was down 0.7% to $US97.30 a tonne. Oil prices were down around 3%, sitting at $US92.8 per barrel. Bitcoin (BTC-USD) was down just over 4%, dropping to $US18,952.
On the agenda
The Australian Industry Group is releasing the Performance of Services Index figures at 8:30am AEST.
The Australian Bureau of Statistics will present the latest Gross Domestic Product figures at 11:30am AEST.
