- 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%.
- 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.
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