Mining sector leading Aussie shares lower at midday
The Australian share market has fallen, pulling back from record high levels after comments by Fed chairman Jerome Powell cast doubt on the chances another double-sized US rate cut.
At midday AEST on Tuesday, the benchmark S&P/ASX200 index was down 42.5 points, or 0.51 per cent, to 8,227.3, while the broader All Ordinaries had fallen 39.1 points, or 0.46 per cent, to 8,499.3.
Overnight, Mr Powell told a business conference the US economy was “strong overall” and interest rate cuts would come “over time”.
“This is not a committee that feels like it’s in a hurry to cut rates quickly,” Mr Powell said in response to a question, hosing down speculation the Fed would do just that.
While the ASX200 was in the red on Tuesday morning, CMC Markets head of sales trading Ashley Glover said the index still looked technically bullish with a move to 8,400 in traders’ sights.
Four of the ASX’s 11 sectors were lower at midday and six were higher, with energy basically flat.
Materials/mining was the biggest loser, dropping 2.2 per cent after five days of gains.
BHP and Rio Tinto had both fallen 2.7 per cent, while Fortescue had pulled back 2.6 per cent.
Goldminers Newmont, Evolution and Northern Star were down 1.2, 1.6 and 1.0 per cent, respectively.
All of the big four banks were lower, with CBA down 1.3 per cent, Westpac retreating 1.2 per cent, ANZ dropping 1.0 per cent and NAB falling 0.6 per cent.
REA Group was up 5.2 per cent to $211.42 after the realestate.com.au owner walked away from its potential $12 billion acquisition of UK-based property platform Rightmove.
“We were disappointed with the limited engagement from Rightmove that impeded our ability to make a firm offer within the timetable available,” REA chief executive Owen Wilson said.
“They had nothing to lose by engaging with us.”
Sigma Health was up 15.6 per cent to $1.665 after the Australian Competition and Consumer Commission said it was considering concessions by the pharmacy product supplier to get its proposed acquisition of Chemist Warehouse past the line.
Sigma is offering to let franchisee pharmacies exit their franchise agreements without penalty to alleviate anti-competition concerns previously outlined by the ACCC.
Appen was up 10.2 per cent to a 15-month high of $2.16 as the artificial intelligence dataset company continued its rebound. Its shares are up roughly fivefold in the past two months.
The Australian dollar was buying 69.30 US cents, from 69.33 US cents at Monday’s ASX close.
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