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Aussie shares flat as US rates outlook hits miners

Australian shares flat as US inflation outlook hits miners and gold stocks

Updated 1 min read

Published by Agyata NewsroomEditorial policyCorrections

Key points

  • The S&P/ASX200 index fell 7.6 points to 9121.4 by midday on Wednesday.
  • Gold prices eased to $US4039 an ounce after US rates outlook dulled non-yielding assets.
  • New home loans fell 15 percent in the September quarter to $81.2 billion.

Why it matters. Rising US inflation and potential higher interest rates from the Federal Reserve are weighing on Australian market sentiment and commodity prices, particularly affecting miners and gold stocks.

Updated Sources: Thewest

Australian shares traded flat on Wednesday as rising US inflation and hawkish Federal Reserve comments dampened expectations for lower global borrowing costs. The S&P/ASX200 index dropped 0.08 percent to 9121.4, while gold stocks fell heavily after the metal eased to $US4039 an ounce. Major miners including BHP, Rio Tinto, and Fortescue declined alongside a 15 percent drop in new home loans during the September quarter.

Latest updates

Aussie shares flat as US rates outlook hits miners

Australian shares remained flat on Wednesday as rising US inflation and hawkish Federal Reserve comments increased expectations for higher global borrowing costs. The S&P/ASX200 index dropped 7.6 points, or 0.08 percent, to close at 9121.4, while the All Ordinaries fell 10.5 points, or 0.13 percent, to 9256. A surge in US Treasury yields and a stronger dollar caused a one percent decline in raw materials, which offset gains in ten of the eleven local sectors. Gold prices fell to $US4039 an ounce and silver dropped to $US51.40 an ounce, dragging down holdings for major miners BHP, Rio Tinto, and Fortescue.

Thewest

Sources

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