Market Update & Important Indicators:
U.S. stocks slipped Wednesday in choppy trading after the Federal Reserve decided to raise interest rates. The Fed's move was widely expected by analysts and investors, but many are sceptical that the U.S. central bank will act aggressively going forward after a recent patch of soft U.S. economic data. The Dow Jones Industrial Average finished 0.2% higher at 21,375 whilst the S&P 500 fell 0.1%. Fed officials lowered their projections for inflation this year, though they still expect annual price gains to reach their 2% target by the end of 2018. The Fed said in a statement it was "monitoring inflation developments closely." Investors sold technology shares with the Nasdaq losing ground and tech stocks in the S&P 500 falling 0.8%. A selloff in tech shares buffeted major indexes Friday and Monday, before the sector recovered slightly Tuesday. Energy stocks fell 2% in the S&P 500 as U.S. crude prices fell 3.7% to $44.73 a barrel amid signs of a persistent global oil glut. The U.S. gold price also dropped overnight, shedding 0.5% to 1,260.10 US$/oz.
The STOXX Europe 600 Index shed 1.17 points, or 0.30%, to 387.58 on Wednesday. British blue-chips closed with losses, erasing earlier gains as the pound advanced against the dollar following weak U.S. economic data. The FTSE 100 fell by 0.4% to end at 7,474.40, as sterling turned higher, climbing back above the $1.28 handle. A stronger pound can help take the FTSE 100 lower, as about 75% of the revenue generated by the index's multinational companies comes from abroad. Disappointing readings on U.S. inflation and retail sales for May on Wednesday whacked the dollar sending it slumping against sterling and other rivals. The moves came before the Federal Reserve released its policy decision.
Stocks in South Korea and Japan edged down 0.1%. The Shanghai Composite Index fell 0.7% amid concerns about heightened Chinese regulatory scrutiny after media reports that the chairman of high-profile Chinese financial firm Anbang Insurance Group was taken away in recent days by Chinese authorities. Late Tuesday, Anbang said its chairman, Wu Xiaohui, can't perform his duties temporarily and has turned them over to other executives. The moves came even as official data showed industrial output in China rose 6.5% in May from a year earlier, matching April's pace.
Australian shares continued to advance strongly Wednesday, rebounding to a near one-month high as bank stocks again joined broad gains. Building on Tuesday's rally coming out of a long weekend, the S&P/ASX 200 climbed 61.1 points, or 1.1%, to 5833.9. The major banks continued to recover from sharp selling over the past month, in part in the wake of a surprise tax on liabilities introduced by the federal government to help it close a budget deficit. Only the energy and telecommunication sectors held the broader market back, faltering as oil prices continued to fall in Asian trading and after Telstra said it could cut up to 1,400 jobs to help cut costs and cover an anticipated earnings gap with the roll out of Canberra's nationwide broadband network.
The London Metal Exchange's three-month copper contract closed 0.31% lower on Wednesday at $5,699/t. The other base metals finished mixed. Lead prices rose 1.2% to 2,056/t, nickel prices rose 1.7% to 8,883/t, whilst zinc prices jumped 0.9% to 2,476/t. Falling for the day, aluminium prices shed 0.3% to 1,873/t, whilst tin prices fell 0.9% to 19,347/t.
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Bionomics Ltd (BNO), Threat Protect Australia Ltd (TPS), Ramelius Resources Ltd (RMS), Zenith Energy Ltd (ZEN), Blackham Resources Ltd (BLK), Top End Minerals Ltd (TND), Northern Star Resources Ltd (NST), Xanadu Mines Ltd (XAM), Dacian Gold (DCN), Egan Street Resources Ltd (EGA), Alice Queen Ltd (AQX), Paringa Resources Ltd (PNL), AWE Limited (AWE), Saracen Mineral Holdings Ltd (SAR), Red River Resources Ltd (RVR), Vital Metals Ltd (VML), Prairie Mining Ltd (PDZ), Hotcopper Holdings Ltd (HOT), Resolute Mining Ltd (RSG), Botanix Pharmaceuticals Ltd (BOT), Pantoro Ltd (PNR), Beadell Resources Ltd (BDR), Investigator Resources Ltd (IVR)
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