the COB: digging deep

Описание: With the US Federal Reserve on hold, the S&P/ASX 200 only slightly extended Wednesday’s decline and shed 0.07% to 8,927 points today.

Overnight, the Fed pointed to persistent inflation and a resilient US labour market as reasons to keep its lending rates between 3.5 and 3.7%. Markets were also disappointed by the lack of hints on what the FOMC might do next.

Instead, they focus on US tech earnings, with rising AI costs a concern for Microsoft investors. Locally, our tech sector was also lower by 2%.

No rotation was observed into the local mining sector this Thursday, with investors digesting results. Mineral Resources receded by 4.15% with a lithium production guidance upgraded, but skews towards the first half of the financial year.

Meanwhile rare earth miners sunk as the US was seen as moving away from critical mineral price floors. Iluka Resources lost 13.8% just today, also due to a mineral sands business impairment.

Locally, consumer discretionary stocks continued to decline after Wednesday’s inflation read and today’s Fed ‘hold’.

Defensive positions fared better, with Coles up 0.4% despite a class action on the alleged entitlements of team members working on public holidays.

More US companies are reporting overnight, with Apple in tech, and Lockheed Martin in defence. Tomorrow, December quarter reports from PLS, Champion Iron and ResMed are released.