Lending Association

ASX closes 0.2% lower: investors monitor US inflation

Shares rose by 0.2 percent as investors monitored US inflation, interpreting it as not hindering the Federal Reserve’s potential interest rate cut by mid-2024. This increase mirrored Wall Street’s positive movement, with the S&P 500 reaching a record high of 5175 points and the Nasdaq index climbing to 16,265 points. Bond yields also rose in response to US inflation data, with benchmark US 10-year treasuries increasing by 5 basis points to 4.15 percent, while Australian 1-year government bond yields rose by 6 basis points to 3.97 percent.

Futures

The Dow Jones futures are pointing to a fall of 15 points.

The S&P 500 futures are pointing to a fall of 0.25 points.

The Nasdaq futures are pointing to a fall of 7.5 points.

The SPI futures are up 21 points.

Best and worst performers

The best-performing sector was Consumer Discretionary, up 1.30 per cent. The worst-performing sector was Materials, down 0.75 per cent.

The best-performing large cap was IDP Education (ASX:IEL), closing 2.66 per cent higher at $19.70. It was followed by shares in Infratil (ASX:IFT) and Aristocrat Leisure (ASX:ALL).

The worst-performing large cap was Mercury NZ (ASX:MCY), closing 2.99 per cent lower at $6.16. It was followed by shares in Newmont Corporation (ASX:NEM) and Yancoal Australia (ASX:YAL).

Asian markets

Japan’s Nikkei has lost 0.17 per cent.

Hong Kong’s Hang Seng has gained 0.21 per cent.

China’s Shanghai Composite has gained 1.54 per cent.

Commodities and the dollar

Gold is trading at US$2,164.10 an ounce.

Iron ore is 1.8 per cent higher at US$110.30 a tonne.

Iron ore futures are pointing to a 2.1 per cent fall.

Light crude is trading $0.50 higher at US$78.06 a barrel.

One Australian dollar is buying 66.16 US cents.