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Aussie shares fall as Wall Street tech sell-off and RBA rate hike loom
Australian shares slip on Monday as a US tech sell-off and an expected RBA rate hike weigh on investors.
Key points
- The S&P/ASX200 fell 51.6 points, or 0.58 per cent, to 8856.5 on Monday.
- Eight of the ASX's 11 sectors finished lower, with consumer staples the biggest loser at down 1.4 per cent.
- Markets were pricing in an 80 per cent chance of a rate hike after hotter-than-expected inflation data last week.
Why it matters. Investors are reluctant to take fresh risks before a widely tipped rate increase, with markets pricing in an 80 per cent chance of a hike.
Australian shares fell on Monday, with the S&P/ASX200 down 51.6 points, or 0.58 per cent, to 8856.5. The Nasdaq fell 2.9 per cent on Friday, its largest one-day percentage drop since June 5, after disappointing quarterly earnings from Intel and Amazon. Moomoo Australia chief market strategist Tapas Strickland said investors are reluctant to take fresh risks before Melbourne Cup Day, when the Reserve Bank of Australia is widely tipped to deliver its fifth rate increase of the cycle.
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Aussie shares fall as Wall Street tech sell-off and RBA rate hike loom
Australian shares fell on Monday after a sharp tech sell-off on Wall Street. The benchmark S&P/ASX 200 dropped 51.6 points, or 0.58 per cent, to close at 8856.5. The broader All Ordinaries shed 48.2 points, or 0.53 per cent, to 8977.2. Investors are anxious ahead of an expected Reserve Bank of Australia rate hike on Tuesday. The tech-heavy Nasdaq also fell in the United States.