AUS
NZ
UK
CA
USA
IND
Highlights
- Extending yesterday’s losses, ASX 200 closed 1.27% lower at 6,601.00 points today.
- Investors are wary of interest rate hike fears as the Federal Reserve will likely announce a 0.75% percentage point rate hike today.
- Asian markets were in a pensive mood today as investors eagerly wait to see how bold the Fed would be on rates.
The last few days have been extremely difficult for investors as the panic over recession woes which was triggered by the US inflation data for May, made it apparent that the Federal Reserve will stand by its monetary tightening stand with further rate hikes in days to come. With this, investors are cautiously watching the two-day Fed meeting, which will likely announce a 0.75% percentage point rate hike.
A string of troubling factors, including a cut in profit by big-cap companies, the World Bank slashing global economic growth forecast, inflation hitting a 40-year high for May in the US investors and now the upcoming rate hike by the US central bank, has resulted in global equities selloff since the start of this week. No sector is left untouched from the prevailing conundrum in the global equity market, and no one can tell whether this selloff will continue after the Federal Reserve meeting tomorrow.
When it comes to the commodities market, gold prices lost their shine as the US dollar hit a 20-year high on Tuesday. Meanwhile, Iron ore prices dropped as fresh COVID-19 outbreaks in China cast a shadow on demand prospects in the world’s second-largest superpower.
MUST READ: Fair Work Commission’s minimum wages decision: Key takeaways
How did ASX 200 perform?
The Australian share market opened today’s trading on a lower note as the benchmark index ASX 200 was down 0.39% at 6,659.60 points in the initial minutes of trading. On the sectoral front, seven of 11 sectors were trading lower in the early morning trade, where consumer discretionary was the best performing sector.
Eventually, at market close, the ASX 200 closed 1.27% lower at 6,601.00 points, setting a new 52-week low.
Over the last five days, the index has lost 7.30%. At market close, all the 11 sectors closed lower, where the information technology was the worst performer. The S&P/ASX 200 Information Technology (Sector) was 3.089% lower at 1301.600 points.
©2022 Kalkine Media®
Who gained? Who lost?
Coming to the top ASX 200 gainers, Polynovo Limited (ASX:PNV), Lynas Rare Earths Limited (ASX:LYC), and Suncorp Group Limited (ASX:SUN) led the pack with 4.819%, 4.220%, and 3.530% gains, respectively. On the flip side, Novonix Limited (ASX:NVX), and Megaport Limited (ASX:MP1) were the top losers, falling 13.637% and 11.074%, respectively.
Asian and global market
After the selloff, which resulted in the S&P 500 falling into a bear market on Monday, the broad market index continued its decline on Tuesday and was down nearly 0.38% at 3735.48 points. However, the tech-dominated Nasdaq Composite experienced some pullback to close 0.18% higher at 10,828.35 points, while the Dow Jones Industrial Average dropped 0.50% to 30,364.83 points.
Asian markets looked in a pensive mood today as shell-shocked investors eagerly wait to see how bold the Fed would be on rates, with many fearing that the extreme action would risk tilting the world into recession.
