ASX closes lower as higher interest rates loom
Latest update: 5:00pm AEST
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The ASX has ended the day in negative territory, after being weighed down by looming interest rate rises, as the Reserve Bank of Australia (RBA) continues to try and wrestle down inflation.
The S&P/ASX200 closed lower, dropping 95.90 points or 1.40% to 6,747.00.
The All Ordinaries fell 99.20 points or 1.40% to 6,983.30.
All 11 sectors ended the day lower, with Energy, Industrials and Materials remaining the worst performers.
Coal miner, New Hope Corporation Limited (ASX:NHC) was down by almost 5% for the day, after being one of Thursday’s top performers, when its shares soared more than 6%.
Amid the current market volatility, Harvey Norman (ASX:HVN) and Pro Medicus (ASX:PME) have recently moved onto the “Perfect 10” Smart Score list, being rated as two stocks that are likely to out perform the market over the longer term.
All sectors down, as market languishes
Latest update: 1:50pm AEST
The ASX tracked lower in the afternoon, with all Sectors in decline, as the threat of more aggressive interest rates looms large.
The S&P/ASX200 dropped 89.80 points or 1.31% to 6,753.10.
The All Ordinaries fell 102.10 points or 1.44% to 6,980.40.
The Energy, Industrials and Materials Sectors sustained the largest losses.
Capricorn Metals (CMM) and Genesis Minerals (GMD) were both down around 9%.
On the upside, APM Human Services International (ASX:APM) shares rose 6% to AU$3.45 in afternoon trading.
The stock’s spike comes after APM Human Services was linked to Angus Knight buyout talks, which APM has since refuted.
ASX follows Wall Street downwards
Latest update: 10:50am AEST
The S&P/ASX200 opened lower today, continuing to track Wall Street’s movements, which has been rattled by the prospect of more aggressive interest rate rises.
The S&P/ASX200 dropped by 47.60 points or 0.70% to 6,795.30, in morning trading.
The Energy Sector fell back from yesterday’s gains, down around 2%.
Coal miner, New Hope Corporation Limited (ASX:NHC) was down around 3%, after its shares soared more than 6% yesterday.
The Metals and Mining Sector also lost ground, with Capricorn Metals (CMM) and Genesis Minerals (GMD) sustaining some of the heaviest losses.
Bucking the market trend was, Arena REIT (ARF) and Regis Healthcare (REG), which were among the top gainers.
Pre-market breakdown
The Australian share market is set to open lower this morning, on the back of losses on Wall Street, which continues to be spooked by the likelihood of more aggressive interest rate rises to come.
ASX futures were down 0.61% at around 6:30am AEST, sitting at about AU$6,801.
It comes after the Australian share market staged somewhat of a comeback yesterday, following heavy losses on Wednesday.
The S&P/ASX200 closed up yesterday, gaining 14.30 points or 0.21% to sit at 6,842.90.
On Wall Street overnight, U.S. indices finished in the red once again as the Dow Jones Industrial Average (DJIA) closed down 0.56%, while the S&P 500 (SPX) dropped 1.13% on Thursday. Meanwhile, the Nasdaq 100 (NDX) fell 1.71%.
The Australian dollar was sitting near US67c at the local market close.
Across commodities, spot gold was down around 1.81% to US$1665 an ounce.
Brent Crude swung back more than 3%, to be sitting at around US$90 a barrel.
In crypto, Bitcoin was down 2%, sitting around US$19,820.
Market watch
Energy stocks performed strongly yesterday, helping the ASX recover from Wednesday’s sharp losses.
Coal miner, New Hope Corporation Limited (ASX:NHC) shares soared more than 6% for the day. It’s gained more than 174% since the beginning of 2022 on the back of increasing demand for the commodity, sparked by conflict in Ukraine.
The market will be watching to see how companies within the S&P/ASX 200 Energy index [XEJ], such as New Hope perform today, given the oil price has fallen back overnight.
That’s because, coal prices are often affected by supply and demand movements within the oil market.
