Reuters | Nov 09, 2018 13:10
* Investors cautious as Fed stands pat, on track to hike rates
* Lendlease slides after putting unit under review
* Materials stocks down 0.7 pct
* Energy stocks pressured by falling oil prices
By Aman Swami
Nov 9 (Reuters) - Australian shares slipped on Friday but were still set for a second week of gains as the U.S. Federal Reserve stayed on course to gradually raise interest rates.
The S&P/ASX 200 index .AXJO slipped 0.3 percent or 14.9 points to 5,913.3 by 0118 GMT, but is set to gain 1.1 percent this week.
The Fed held monetary policy steady on Thursday, remaining on track to keep gradually raising rates, with the year's fourth hike expected next month. McCarthy, chief market strategist at CMC Markets, said there had been some hope that the Fed might tilt towards a slower pace of rate hikes after the midterm elections, but it stuck to its previous messaging.
"That saw a reaction as the U.S. dollar rose and U.S. shares were in the red for most of their sessions, which is bringing some caution to trading today," McCarthy noted.
Australia's Queensland state is set to unveil proposed resource regulations next week for miners to pay into an "insurance fund" for the remediation of old mines. regulations, if enacted, will impact the likes of global miners BHP Billiton (LON:BLT) BHP.AX and Rio Tinto (LON:RIO) RIO.AX which have operations in the mineral-rich state.
Shares of BHP and Rio weakened 0.4 percent and 0.8 percent, respectively.
Energy stocks .AXEJ were down more than 1 percent after oil prices fell nearly 2 percent on Thursday as investors focused on rising global crude supply, which has increased more quickly than many had expected. O/R
"Oil is looking shaky and there is no surprise that is weighing on the energy sector this morning - it's the worst performing sector," said McCarthy.
Property manager LendLease Group LLC.AX slumped about 16 percent to its lowest in 18 months after it made a A$350 million ($254.2 million) after tax provision against underperformance in its engineering and services business. Zealand's benchmark S&P/NZX 50 index .NZ50 edged 0.1 percent higher to 8,901.9.
($1 = 1.3767 Australian dollars)
Written By: Reuters
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