The local share market fell for a second straight day on Tuesday, ahead of a flurry of central bank meetings, and following the release of a set of minutes from the Reserve Bank of Australia that were taken as implying that the local central bank is considered raising rates.
With the US Federal Reserve’s policy meeting occupying the bulk of market attention, the domestic indices were lower on Tuesday, with the benchmark S&P/ASX 200 (INDEXASX: XJO) down 33.8 points, or 0.5%, to 7.196 points, and the broader All Ordinaries (INDEXASX: XAO) index losing 33.1 points, or 0.4%, to 7,395.
Weaker iron ore prices – on mounting concerns about China’s deepening property crisis – saw the iron ore heavyweights lose ground, with BHP Group Ltd (ASX: BHP) sliding 66 cents, or 1.4%, to $45.10; Fortescue Metals Group Ltd (ASX: FMG) giving back 23 cents, or 1.1%, to $20.97; and Rio Tinto Ltd (ASX: RIO) down 77 cents, or 0.7%, to $118.54.
BHP Group Ltd (ASX: BHP)
All of the Big Four banks were in the red, with ANZ Group Holdings Ltd (ASX: ANZ) leading the slippage, losing 24 cents, or 0.9%, to $25.51; National Australia Bank Ltd. (ASX: NAB) 20 cents, or 0.7%, weaker at $29.38; Westpac Banking Corp (ASX: WBC) down 10 cents, or 0.5 per cent, to $21.69; and Commonwealth Bank of Australia (ASX: CBA) off 50 cents, also 0.5%, to $102.13.
Coal not cooling
In coal, New Hope Corporation Ltd (ASX: NHC) rose 13 cents, or 2.1%, to $6.30 – its highest level since January – after posting a $1 billion profit, on strong coal demand and record high prices.
New Hope Corporation Ltd (ASX: NHC)
Whitehaven Coal Ltd (ASX: WHC) advanced 8 cents, or 1.2%, to $6.69; Stanmore Resources Ltd (ASX: SMR) gained 15 cents, or 4.5%, to $3.47; Coronado Global Resources Inc (ASX: CRN) was up 6.5 cents, or 3.6%, to $1.86; and Yancoal Australia Ltd (ASX: YAL) gained 13 cents, or 2.6%, to $5.14.
Among the lithium cohort, producer Allkem Ltd (ASX: AKE) dipped 25 cents, or 2%, to $12.43; and fellow producer Pilbara Minerals Ltd (ASX: PLS) lost 9 cents, or 2.1%, to $4.26. IGO Ltd (ASX: IGO), which mines nickel and lithium, retreated 9 cents, or 0.7%, to $13.06; and Mineral Resources Ltd (ASX: MIN), which mines iron ore as well as lithium, eased 13 cents, or 0.2%, to $70.35.
Lithium project developer Core Lithium Ltd (ASX: CXO) shed 2 cents, or 5.1%, to 37 cents; and fellow developer Piedmont Lithium Inc (ASX: PLL) also gave up 2 cents, in its case 2.9%, to 68 cents.
Gold miner and takeover target Newcrest Mining Ltd (ASX: NCM) advanced 36 cents, or 1.4%, to $25.60 after US miner Newmont Corporation (NYSE: NEM) received the green light from Australia’s Foreign Investment Review Board (FIRB) to proceed with its planned acquisition, pending further regulatory approvals.
Elsewhere in gold, Ramelius Resources Ltd (ASX: RMS) rose 6.5 cents, or 4.6%, to $1.46; Silver Lake Resources Ltd (ASX: SLR) closed 4.5 cents, or 5.1%, higher at 92 cents; Evolution Mining Ltd (ASX: EVN) lifted 5 cents, or 1.4%, to $3.70; Gold Road Resources Ltd (ASX: GOR) gained 3.5 cents, or 2.1%, to $1.72; and Perseus Mining Ltd (ASX: PRU) added 2.5 cents, or 1.4%, to $1.78.
In energy, Woodside Energy Group Ltd (ASX: WDS) retreated 4 cents, or 0.1%, to $37.80; but Santos Ltd (ASX: STO) strengthened 7 cents, or 0.9%, to $7.85.
Fed considered unlikely to shift rates
In the US, stock indices retreated as Wall Street awaited the results of this week’s Federal Reserve policy meeting.
The blue-chip Dow Jones Industrial Average (INDEXDJX: .DJI) lost 106.57 points, or 0.3%, to end at 34,517.73; the broader S&P 500 (INDEXSP: .INX) index eased 9.58 points, or 0.2%, to 4,443.95; and the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) Index walked back 32.05 points, or 0.2%, to 13,678.19.
The two-day policy meeting concludes tonight Australian time. It will feature the Fed’s quarterly update on what it expects for a several key indicators — interest rates, gross domestic product, inflation and unemployment – but there is fairly widespread consensus that the central bank will not lift rates.
On the bond market, the US 10-year yield advanced 5.5 basis points, to 4.364%, while the 2-year yield was up 6.4 basis points, at 5.105%.
Gold retreated US$2.32 to US$1,931.88 an ounce; the global benchmark Brent crude oil grade slipped 9 cents to US$94.34 a barrel; and US West Texas Intermediate crude fell 28 cents, or 0.3%, to US$91.20 a barrel.
The Australian dollar is buying 64.57 US cents this morning, up from 64.33 US cents at the ASX close on Tuesday.
