The Australian sharemarket experienced a day of choppy trading, ultimately edging lower, as cautious investors awaited the all-important US Federal Reserve meeting. The benchmark ASX 200 slipped 0.1 per cent, to end the day at 7695.80, while the broader All Ordinaries index dipped 0.04 per cent to end at 7954.5.
The dip was attributed to investors holding back before the closely watched US Federal Reserve meeting and press conference booked for 5am on Thursday (AEDT). Australia’s technology stocks also dipped 0.04 per cent, while the Aussie dollar traded 0.05 per cent lower against the Greenback at US65.2c.
Tech companies and utilities were reported to have weighed the Australian share market down despite a positive start and gains on Wall Street overnight. The S&P/ASX 200 Index fell 7.4 points to 7695.8 at the close, with eight out of the 11 sectors finishing in the red. Investors exhibited caution ahead of the US Federal Reserve’s policy meeting, which could pour cold water on interest rate cuts hopes.
The cautious sentiment seen in the Australian market was echoed in other sectors as well. The RBA interest rate board revamp was reportedly at risk and some major players in the industry, including Woodside, Santos, and South32, trimmed early gains as oil prices slipped. Oil pulled back from multi-month highs amidst a strong dollar, negatively impacting demand.
However, despite the cautious tone, Australian shares inched up in the early afternoon trading following a narrow range in the market. The benchmark S&P/ASX 200 Index was on track for its third session of gains after the Reserve Bank softened its rhetoric about the prospect of a rate rise at its policy meeting.
The broader picture showcased a nervous market sentiment, with investors treading cautiously ahead of the US Federal Reserve’s policy meeting and press conference. The outcomes of these events, particularly any insights into future rate cuts, have been key determinants of market behavior and investor sentiment.
In conclusion, the Australian sharemarket experienced a day of cautious trading, with the US Federal Reserve’s meeting looming large on the horizon. The dip in the ASX 200 and All Ordinaries index, coupled with caution displayed in technology stocks and the Aussie dollar, reflect the overall apprehension among investors. As the market awaits eagerly for outcomes from the US Federal Reserve’s policy meeting and press conference, it remains to be seen how these future events will shape the direction of the Australian sharemarket.
