Market dips as investors look to end of Fed stimulus
But better-than-expected manufacturing data from China helped the market lift from the session's lows. HSBC's flash purchasing managers index showed Chinese manufacturing hit a four-month high in August.
The benchmark S&P/ASX 200 Index lost 24.3 points, or 0.5 per cent, to 5075.7, after earlier falling as low as 5028, while the broader All Ordinaries Index slid 23.6 points, or 0.5 per cent, to 5066.7.
Falls were led by the materials sector (down 0.8 per cent) and financials (down 0.4 per cent), while consumer discretionary stocks edged up 0.2 per cent.
Local investors also had to digest a flood of earnings, with more than 20 companies reporting.
Amid a mixed bag of results, the standout was Fortescue Metals, IG Markets analyst Chris Weston said. The miner posted a higher-than-expected net profit of $US1.74 billion and surprised its shareholders with a 10¢ fully franked dividend. Fortescue shares rallied on the result, jumping 4.2 per cent to $4.26.
The result did not help lift the other miners, with BHP falling 1 per cent to $35.37 and Rio losing 0.9 per cent to $59.04.
Among other companies reporting, IAG shares fell 2.2 per cent to $5.80, Origin Energy rallied 5.8 per cent to $12.98 and Pacific Brands slumped 7.6 per cent to 79¢.
Australia's biggest goldminer, Newcrest, fell 1 per cent to $12.40, after the metal's price slipped overnight, taking a break from its recent rally.
The big banks ended mixed: CBA and NAB rose 0.2 per cent and 0.6 per cent respectively, while ANZ and Westpac fell 0.8 per cent and 0.9 per cent.
The Chinese manufacturing data also boosted the dollar, which was fetching US89.9¢ in late trade after plunging as low as US89.32¢ in the wake of the Fed minutes.
The currency is still showing a loss of more than 2 per cent since Monday against its US counterpart and is at three-year lows versus the pound.
"The Aussie will stay heavy and I don't see it trading back above US90.50¢. Anywhere near that level, it's going to be sold," said a trader at a European bank in Singapore. BusinessDay
Frequently Asked Questions about this Article…
The market fell as investors worried about an imminent end to the US Federal Reserve's stimulus program and absorbed a large batch of local company earnings. That Fed concern pushed indices lower despite some support later from better-than-expected Chinese manufacturing data.
The S&P/ASX 200 lost 24.3 points (about 0.5%) to 5,075.7 after earlier dipping to 5,028, while the All Ordinaries slid 23.6 points (about 0.5%) to 5,066.7.
Materials led the declines, down about 0.8%, and financials fell around 0.4%. Consumer discretionary was one of the few bright spots, edging up roughly 0.2%.
Better-than-expected Chinese manufacturing data (HSBC's flash PMI at a four-month high) helped lift markets off intraday lows and boosted the Aussie dollar, which traded around US89.9¢ after earlier plunging to about US89.32¢.
Fortescue Metals was the standout, posting a higher-than-expected net profit of US$1.74 billion and surprising shareholders with a 10¢ fully franked dividend. Its shares jumped about 4.2% to $4.26.
Despite Fortescue's strong result, other major miners fell: BHP dropped about 1% to $35.37 and Rio Tinto lost about 0.9% to $59.04. Newcrest, Australia’s biggest gold miner, fell about 1% to $12.40 after the gold price slipped overnight.
Big banks finished mixed: CBA and NAB rose roughly 0.2% and 0.6% respectively, while ANZ and Westpac fell about 0.8% and 0.9%.
Yes — the Aussie was weaker, trading around US89.9¢ in late trade after falling as low as US89.32¢ earlier. It has lost more than 2% since Monday and is at three‑year lows versus the pound. Traders noted selling pressure if it approaches about US90.50¢.
Call 1300 880 160
Start a chat
Schedule a call
