ASX tumbles to four-week low

ASX tumbles to four-week low

The Australian share market tumbled on Tuesday to hit a four-week low as central bankers in Europe foreshadowed a delay in price cuts.

At the closing bell, the benchmark S&P/ASX200 dropped 1.1 per cent, or 81.5 factors, to 7,414.8, whereas the broader All Ordinaries shed the identical quantity to 7,647.1.

Against the dollar, the Australian greenback was 0.7 per cent decrease to 60.61c on the finish of buying and selling.

The fall adopted feedback from Robert Holzmann, who sits on the European Central Bank’s governing council, on the Davos Economic Forum in a single day.

He stated it was too early to speak about easing financial coverage and there was “no guarantee of rate reductions” in 2024.

“The likely cause of today’s sell-off is a reaction to ECB officials pushing back against the pricing of early ECB rate cuts,” IG Australia market analyst Tony Sycamore stated.

“There is a concern that Fed Governor (Christopher J) Waller may echo similar hawkish thoughts when he speaks [on Wednesday] morning to bring some sense of reality to rates markets that has gotten ahead of itself.”

Wall Street was closed on Monday for the Martin Luther King Day vacation.

Locally, all 11 trade sectors completed within the crimson. Utilities shares had been the worst performer, falling 1.8 per cent.

Energy and supplies additionally completed sharply decrease, each shedding 1.5 per cent.

Despite an escalation of tensions within the Middle East, crude oil costs steadied. Brent Crude, the worldwide benchmark, edged barely larger to $US78.23 per barrel, whereas European fuel futures slipped to 5 months lows.

Energy sector heavyweights Woodside shed 1.6 per cent to $31.13, Santos slipped 1.8 per cent to $7.69 and Karoon Energy tumbled 2.1 per cent.

On the Singapore trade, iron ore futures for the February contract prolonged their losses, falling 1 per cent to $US126.25 a tonne.

ASX heavyweight BHP eased 1.4 per cent to $46.50, whereas Fortescue dipped 2.2 per cent to $26.65.

Despite delivering the most effective export quantity for its iron ore division in 5 years, Rio Tinto shares slipped 1.3 per cent to $126.66. The mining large revealed it has obtained a tax declare price $US80m ($AU121m) from the Mongolian Tax Authority.

In different firm news, jewelry retailer Lovisa was the worst performer on the benchmark, dipping 5.2 per cent to $22.72, after UBS analysts revised the inventory to a impartial score.

Charter Hall added 2.2 per cent to $11.85 after brokers at Morgan Stanley upgraded the property agency’s shares to an obese score, and upped its value goal to $13.25.

Supercheap Auto, Macpac and Rebel, mother or father Super Retail Group, slumped 2.6 per cent to $16.27 after the inventory was downgraded by Jarden analysts to an underweight score.

On Monday, the shares vaulted 5.6 per cent, after the agency posted a strong improve in gross sales over the six months to December 2023.

Originally printed as Australian share market tumbles to four-week low amid European price minimize jitters

Source: www.dailytelegraph.com.au