Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Australian shares edge lower as Fed tempers weekly gains; NZ up

Published 09/11/2018, 01:10 pm
Updated 09/11/2018, 01:10 pm
© Reuters.  Australian shares edge lower as Fed tempers weekly gains; NZ up

* 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.

Materials stocks .AXMM fell 0.7 percent with Bluescope Steel BSL.AX down about 3.4 percent while South32 S32.AX fell 2.8 percent.

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.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

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.

Leading independent gas producers Santos STO.AX and Woodside Petroleum WPL.AX fell 0.9 percent each.

Financial stocks .AXFJ erased earlier strength to drop slightly, with National Australia Bank Ltd NAB.AX down as much as 0.9 percent.

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.

Z Energy ZEL.NZ was the top percentage gainer, rising 2.5 percent while Ryman Healthcare RYM.NZ was the top percentage loser, falling 1.5 percent.

($1 = 1.3767 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.