ASX 200 falls on Fed’s rate hike update; Evolution Mining top loser

More on:

Image Source: © 2022 Kalkine Media®

Highlights

  • After opening on a strong note, the ASX 200 soon slipped back in the red territory.
  • While the ASX All Ordinaries index was down 0.61%, the A-VIX shot up by 6.34%.
  • Seven of 11 sectors are trading in the red so far today.

After opening on a strong note, the ASX 200 soon slumped back in the red territory, with heavy losses in consumer discretionary, healthcare and tech stocks weighing on the domestic market. Earlier, the benchmark index surged as much as 1.2% in opening trade, lifted by energy and utilities. Meanwhile, US stocks fell on Wednesday after the US Federal Reserve indicated it might raise interest rates in March, reiterating its plan of paring bond purchases.

The index has lost 5.35% over the last five days, but it has gained 2.50% over the last 52 weeks.

At 11:50 AM (AEST), the index was trading at 6.947.80, down 0.20%. The Australian markets were closed on Wednesday on account of a public holiday.

While the ASX All Ordinaries index was down 0.61%, the A-VIX shot up by 6.34%.

Sectors were trading mixed. Seven of 11 sectors were lower today. Energy was the best performing sector, rebounding from its recent decline to trade 2.87% higher.

What happened in overnight trade on Wall Street?

After rising for most part of the day, the Dow Jones fell 0.38%, the S&P 500 declined 0.15%, and the NASDAQ ended flat.

In its latest policy update, the Fed signaled it is expected to hike interest rates in March. "With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate," the Federal Open Market Committee said in a policy statement.

The Fed also informed that its policy-setting members had reached an agreement on shrinking its balance sheet.

How has the market performed so far?

Evolution Mining was down over 9%, Silver Lake Resources edged 7% lower, and Northern Star Minerals fell over 5%.

Codan shed over 8%, WiseTech Global declined nearly 7%, and Xero was down over 5%.

Beach Energy was the top gainer, up nearly 9%.

Newsmakers

  • Westgold Resources reported a record second quarter production of 66,688 ounces.
  • Champion Iron announced an inaugural dividend of 10 cents per share.
  • Premier Investments announced that its sales grew in the first half of the 2022 financial year.
  • Perpetual rose on news that its assets under management rose in the second quarter.
  • PointsBet announced a launch of its online casino product in West Virginia.
  • Evolution Mining fell after reporting its quarterly results.
  • Kogan fell after the company said that it supplies chain disruptions were still hurting profits.

RELATED ARTICLE: Why have tech stocks been on the decline in 2022?

RELATED ARTICLE: Trends that will lead global tech space in 2022 and beyond

RELATED ARTICLE: Three ASX BNPL player in focus amid Zip & Sezzle merger talks


 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.