the COB: 4-month low

Описание: The S&P/ASX 200 was severely hit on Thursday amid the ongoing Middle-East conflict, and inflation pressures confirmed by the US Federal Reserve which held its rates steady.

 

The local index dived 1.65% to a four-month low, or 8,497.80 points. 

 

In the US, the Fed projected increased inflation in the near-term, but says the overall effects on the economy are too early to tell. 

 

The miners dived on negative sentiment, with BHP dropping 3.5%. The gold space tanked on a stronger greenback, with some miners registering double-digits losses such as Ora Banda Mining and Westgold Resources falling 14.1% and 12.8% respectively. 

 

Safe-havens were rather the consumer staples. They picked up during the day’s trade, and Woolworths ended 2% higher, after starting the day in the red.

 

The energy stocks also offered a rare spot of green. The price of a barrel of crude rose above US$112 during the session. Woodside closed 7.2% higher. It also appointed former Anglo American chief executive, Mark Cutifani, as an independent non-executive director. 

 

Elsewhere, engineering firm Worley rose 3% as it was approved for the second phase of an LNG project in the US. 

 

Overnight, more central banks will hand down interest rates. Both the Bank of England and the ECB are expected to keep their directing rates on hold.