Australian Market Significantly Lower

Australian shares are trading significantly lower on Wednesday, extending the losses in the previous three sessions, with the benchmark S&P/ASX 200 falling to near the 7,500 level, following the broadly negative cues from global markets overnight, with weakness across most sectors led by mining, financial and technology stocks.

Traders are reacting to stronger-than-expected US inflation data that reinforced the view that the US Fed will keep interest rates higher for longer.

The benchmark S&P/ASX 200 Index is losing 81.10 points or 1.07 percent to 7,522.50, after hitting a low of 7,489.40 earlier. The broader All Ordinaries Index is down 82.10 points or 1.05 percent to 7,765.70. Australian stocks ended modestly lower on Tuesday.

Among major miners, Mineral Resources and Fortescue Metals are losing more than 2 percent each, while BHP Group is declining more than 1 percent and Rio Tinto is down almost 1 percent.

Oil stocks are lower. Santos and Woodside Energy are edging down 0.1 to 0.5 percent each, while Origin Energy is losing almost 1 percent and Beach energy is declining more than 2 percent.

In the tech space, Afterpay owner Block is losing more than 5 percent, Xero is declining almost 2 percent and WiseTech Global is down more than 1 percent, while Appen is advancing almost 2 percent and Zip is adding more than 2 percent.

Among the big four banks, ANZ Banking and Westpac is losing almost 2 percent each, while National Australia Bank is slipping more than 2 percent. Commonwealth Bank is declining almost 3 percent after its cash profits fell 3 percent in the first half as profit margins continued to suffer, but it will still pay a $2.15 dividend.

Among gold miners, Newmont and Northern Star Resources are losing more than 3 percent each, while Gold Road Resources is declining almost 3 percent, Resolute Mining is slipping almost 4 percent and Evolution Mining is down almost 1 percent.

In other news, shares in AMP are surging almost 8 percent after the financial giant pledged to return a further $295 million through future dividends or buying back shares on-market.

Shares in GrainCorp plunged almost 13 percent after the commodity trading company said it expects underlying profit to more than halve in FY24 from last year.

Shares in Downer EDI are soaring 14 percent after the construction company said it expected stronger profit margins in the second half of the year.

Shares in IDP Education rallied over 11 percent after it posted a 23 percent net-profit growth and 15 percent increase to its revenue in the first half.

In the currency market, the Aussie dollar is trading at $0.645 on Wednesday.

On the Wall Street, stocks moved sharply lower during trading on Tuesday, with the major averages all showing significant moves to the downside after ending Monday’s trading narrowly mixed. The Dow pulled back well off yesterday’s record closing highs.

The major averages climbed off their worst levels going into the close but still posted steep losses on the day. The Dow tumbled 524.63 points or 1.4 percent to 38,272.75, the Nasdaq plunged 286.95 points or 1.8 percent to 15,655.60 and the S&P 500 slumped 68.67 points or 1.4 percent to 4,953.17.

The major European markets also all moved to the downside on the day. While the German DAX Index slumped by 0.9 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index both slid by 0.8 percent.

Crude oil prices climbed higher Tuesday amid concerns about supply due to the ongoing tensions in the Middle East. West Texas Intermediate Crude oil futures for March rose $0.95 or 1.25 percent at $77.87 a barrel, up for a seventh straight session.

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