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The local share market has sunk again, after another economic readout in the United States appeared to give the Federal Reserve the green light to aggressively hike rates next week.
At noon on Friday, the benchmark S&P/ASX200 index was down 73.8 points, or 1.08 per cent, to an eight-day low of 6769.1.
The broader All Ordinaries was down 76.1 points, or 1.07 per cent, to 7006.4.
Overnight, the S&P500 fell 1.1 per cent after the Commerce Department reported consumer spending rose 0.3 per cent last month, beating expectations.
“The US retail sales data was the last and the most important reading that we were going to get before the Fed’s decision next week,” Avatrade chief market analyst Naeem Aslam wrote.
The data confirms the Fed is likely to hike interest rates by 75 basis points, Mr Aslam wrote.
“A full percentage point would be a disaster.”
With four hours of trading left, the ASX was on track for a 1.8 per cent decline for the week, putting it on pace for its third week of declines in four.
Every sector was lower, with energy the biggest loser – falling 2.8 per cent after Thursday’s 3.7 per cent rally.
Woodside was down 3.1 per cent to $32.70 and Santos had dropped 2.1 per cent to $7.795.
All of the banks were lower, with ANZ the worst performer, falling 1.3 per cent to $23.43.
The heavyweight mining sector was down 1.7 per cent, with BHP down 1.4 per cent to $32.19, and Rio Tinto falling 1.5 per cent to $93.27.
Goldminers were having a tough day, as the price of the precious metal fell two per cent to a more than two-year low of $US1,663.
Newcrest was down 2.7 per cent, Northern Star down 4.0 per cent and Evolution down 4.4 per cent.
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