Aussie shares fall after US rate expectations repriced
The Australian share market has tumbled after returning from the long weekend following surprising US employment data that raises the prospect the Federal Reserve will be forced to raise interest rates sooner. the end of year
While the S&P/ASX200 lost 45 points at noon on Tuesday, falling 0.52 percent to 8,580.1 points, the All Ordinaries index fell 55 points, or 0.62 percent, to 8,800.9 points.
“Much stronger-than-expected US nonfarm payrolls results in volatile financial markets on Friday led investors to sharply reprice the Fed’s policy path,” said Mantas Vanagas, Westpac Group economist.
The basic materials sector fell almost 3 per cent as gold fell to 11-week lows around US$4,270 ($6,059) an ounce on expectations that US interest rates would rise and the dollar strengthen.
Megaminers BHP, Rio Tinto and Fortescue fell more than 2.2 percent following recent declines in iron ore and copper futures.
Woodside and Santos recovered with Brent crude trading around $94 a barrel, still in the last two-week range despite a brief resumption of attacks between Iran and Israel at the weekend.
Oil prices remain high, up more than 28 percent since the start of the Persian Gulf conflict, but remain well below recent peaks around US$114 per barrel.
The heavyweight financial segment fell about 0.2 percent; All four major banks were in the red, continuing an overall positive morning for the sector.
Traditionally defensive consumer staples have outperformed the market as investors sought shelter from ongoing uncertainty; It rose 1.5 per cent on Monday thanks to strong leadership from Coles and Woolworths.
The health sector, which has lost almost half of its value since August last year, was also attracting buyers with a 1.3 percent increase and room for action.
Consumer discretionary stocks rose 0.8 percent on a strong broad sector performance led by Super Retail, Harvey Norman and Eagers Automotive, which charged 3.5 percent higher, signaling plans to extend the buyback program.
The move comes as the Westpac-Melbourne Institute consumer sentiment index fell to April lows as fears about the energy crisis and family finances loomed large.
oOh!media shares rose more than seven percent after emerging from a trading halt; It confirmed it had received conditional and non-binding takeover offers from Bain Capital and other financial sponsors in competition with an existing bid from Pacific Equity Partners and I Squared Capital.
Nine Entertainment is handing over youth broadcaster Pedestrian to Vinyl Group, a week after completing the transformation of its regional TV assets to be owned and operated by WIN Network.
The Australian dollar bought 70.58 US cents, down from 71.25 US cents at 5pm on Friday, after the dollar strengthened against major currencies on expectations of a Fed rate hike in 2026.
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