ASX sinks back into trenches – U.S. Fed minutes next

July 6, 2022 - 1 month ago

The Australian share market struggled to attract any bullish interest Wednesday as global recession calls got louder.

Much is agreed that the news wires have added fuel to the fire; however, eyes will be on the minutes of the U.S. Federal Open Market Committee (FOMC) last policy meeting from June 14-15.

The release of the FOMC minutes will clarify the prior rate hike announcement by the U.S. Federal Reserve after the U.S. central bank in June announced a rate hike by 75 basis points (bps).

Adding to the clarification on the rate hike announcement, the FOMC minutes will dictate the economic indicators to understand the growth prospects of the U.S. economy.

Meanwhile, back home, the benchmark S&P/ASX 200 index lost -34.8 points, or -0.53%, at 6,594.5, while the All Ordinaries fell -33.8 points, or -0.50%, to 6,784.3, while our local currency, the Australian dollar, is currently buying US$0.6796.

On the sectoral front, energy tumbled by -5.8%, with materials falling by -5%, while real estate shined after rising +3.2%, with information technology adding +3.1%.

Woodside Energy plunged by -6.9% to $30.20, Santos fell by -6.1% to $7.02, and Beach Energy closed -8% lower at $1.61.

In Financials, the “Fab Four” banks were firmer, with the National Australia Bank adding +1.8% to $28.15, Westpac rose +0.9% to $19.85, ANZ Banking advanced +0.9% to $22.40, and the Commonwealth Bank ended the session higher after adding +0.8% to $92.00.