Australian Shares Fall as Investors Await US Inflation Data and Fed Rate Decision

Domino’s Pizza Enterprises fell as much as 11.9% to top losses on the benchmark index, after the company said that it would shut 27 stores in Denmark and its construction and supply arm in Australia under it efforts to improve its performance. New Zealand’s benchmark S&P/NZX 50 index rose 0.5% to 11,675.21.'> Domino’s Pizza Enterprises fell as much as 11.9% to top losses on the benchmark index, after the company said that it would shut 27 stores in Denmark and its construction and supply arm in Australia under it efforts to improve its performance. New Zealand’s benchmark S&P/NZX 50 index rose 0.5% to 11,675.21.'/>

Key Highlights :

1. The S&P/ASX 200 index fell 0.1% to 7,115.0 by 0027-GMT.

2. Investors will be closely monitoring US Consumer Price Index data, due to be released later in the day, and Producer Price Index data, due on Wednesday, for a reading of how well the Fed’s tightening cycle has managed to curb high inflation.

3. The US central bank is also set to begin its two-day meeting later in the day to give out its rate decision, as traders are pricing in a roughly 75% chance of rates kept steady.

4. Back in Sydney, export-reliant miners fell 1.5%, tracking subdued iron ore futures as cautious traders braced for a raft of Chinese data for May to be released this week. Mining behemoths BHP Group, Rio Tinto and Fortescue Metals fell between 1.6% and 1.4%.

5. IGO fell 2.8% after announcing the appointment of Ivan Vella, a former executive at mining giant Rio Tinto, as the miner’s new CEO. Energy Stocks further toppled 1.7% as oil prices fell after analysts highlighted rising global supplies and concerns about demand growth. Sector giant Woodside and Santos descended 2.1% and 2.2%, respectively. Gold stocks further took away 1.6% from the local bourse as bullion lost shine.

6. Domino’s Pizza Enterprises fell as much as 11.9% to top losses on the benchmark index, after the company said that it would shut 27 stores in Denmark and its construction and supply arm in Australia under it efforts to improve its performance.

7. New Zealand’s benchmark S&P/NZX 50 index rose 0.5% to 11,675.21.

     Australian shares fell on Tuesday as investors awaited US inflation data and the Federal Reserve’s interest rate decision this week. The S&P/ASX 200 index fell 0.1% to 7,115.0 by 0027-GMT, dragged down by miners. Investors will be closely monitoring US Consumer Price Index data, due to be released later in the day, and Producer Price Index data, due on Wednesday, for a reading of how well the Fed’s tightening cycle has managed to curb high inflation.

     Mining behemoths BHP Group, Rio Tinto and Fortescue Metals fell between 1.6% and 1.4%, while IGO fell 2.8% after announcing the appointment of Ivan Vella, a former executive at mining giant Rio Tinto, as the miner’s new CEO. Energy Stocks further toppled 1.7%, as oil prices fell after analysts highlighted rising global supplies and concerns about demand growth. Sector giant Woodside and Santos descended 2.1% and 2.2%, respectively. Gold stocks further took away 1.6% from the local bourse as bullion lost shine.

     Domino’s Pizza Enterprises fell as much as 11.9% to top losses on the benchmark index, after the company said that it would shut 27 stores in Denmark and its construction and supply arm in Australia under it efforts to improve its performance. Meanwhile, New Zealand’s benchmark S&P/NZX 50 index rose 0.5% to 11,675.21.

     The US central bank is set to begin its two-day meeting later in the day to give out its rate decision, as traders are pricing in a roughly 75% chance of rates kept steady. Investors are closely monitoring US inflation data, which will give an indication of how well the Fed’s tightening cycle has managed to curb high inflation. The outcome of the meeting will be closely watched by investors, as it will determine the future path of monetary policy in the US.

     In summary, Australian shares fell on Tuesday as investors awaited US inflation data and the Federal Reserve’s interest rate decision this week. Mining and energy stocks led the losses on the benchmark index, while Domino’s Pizza Enterprises fell the most on the day. The US central bank is set to begin its two-day meeting later in the day to give out its rate decision, as traders are pricing in a roughly 75% chance of rates kept steady. Investors will be closely monitoring US inflation data, due to be released later in the day, for a reading of how well the Fed’s tightening cycle has managed to curb high inflation.

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