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ASX Slips as Tech Stocks Track Wall Street Gains Ahead of US Midterms
The ASX slipped on Wednesday while tech stocks rose, tracking a Wall Street rebound ahead of the US midterm elections.
Key points
- The S&P/ASX 200 was down 0.6 per cent at 8836.30 just before 11am AEDT, with eight of its 11 sectors in the red.
- Energy stocks rose as oil prices edged higher, with West Texas Intermediate rising towards $US97 a barrel.
- Brent climbed above $US107 a barrel overnight before closing below $US104, as traders weighed the US-Iran war outlook.
Why it matters. Tech stocks' rebound is buoying the local sector, while the Reserve Bank's wait-and-see signal leaves the outlook for rates open in the months ahead.
The S&P/ASX 200 was down 50.5 points, or 0.6 per cent, at 8836.30 just before 11am AEDT on Wednesday, with eight of its 11 sectors in the red. Tech stocks rose after a rebound in some Big Tech stocks on Wall Street, with NextDC up 5.1 per cent and Megaport jumping 5 per cent. BHP and Rio Tinto fell 0.7 and 0.8 per cent as copper slumped to a seven-week low, while investors digested the Reserve Bank's latest rate hike to an 18-year high.
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ASX Slips as Tech Stocks Track Wall Street Gains Ahead of US Midterms
The Australian sharemarket had a soft start to Wednesday's trading session. Investors were digesting the Reserve Bank's latest rate hike, which lifted the cash rate to its highest point since 2008. Tech stocks tracked gains on Wall Street. Traders were also waiting for news from the United States, where polls began to close for the midterm elections. The market's direction is expected to depend on the election outcome and further economic signals.