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ASX down 0.1%: Interest rate-sensitive real estate stocks

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2024-01-17

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Australian shares started the trading day on a decline, influenced by the negative trend in Wall Street due to comments from US Federal Reserve policymaker Christopher Waller opposing expectations of an imminent interest rate cut. The the S&P/ASX 200 is 0.01 per cent lower at 7,413.80. This decline was primarily driven by losses in interest rate-sensitive real estate stocks, with Scentre Group, Charter Hall, and Goodman witnessing decreases. 

In the United States, the S&P 500 decreased by 0.4% at the end of the trading session, while the Nasdaq slipped 0.2%, and the Dow Jones declined by 0.6%. Additionally, the Australian dollar (AUD) experienced a significant decline of up to 1.2%, dropping below US66¢, in response to a strengthening US dollar that saw its most significant rally in 10 months. Furthermore, the yield on the US 10-year note surged by over 10 basis points during this period.

The SPI futures are pointing to a fall of 1 point.

Best and worst performers

The best-performing sector is Consumer Discretionary, up 0.44 per cent. The worst-performing sector is Energy, down 0.96 per cent.

The best-performing large cap is Boral (ASX:BLD), trading 1.82 per cent higher at $5.325. It is followed by shares in Aristocrat Leisure (ASX:ALL) and Rio Tinto Group (ASX:RIO).

The worst-performing large cap is Evolution Mining (ASX:EVN), trading 20.53 per cent lower at $2.98. It is followed by shares in Northern Star Resources (ASX:NST) and Newmont Corporation (ASX:NEM).

Commodities and the dollar

Gold is trading at US$2029.10 an ounce.

Iron ore is 0.4 per cent higher at US$129.45 a tonne.

Iron ore futures are pointing to a 1.55 per cent rise.

One Australian dollar is buying 65.83 US cents.

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