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ASX down 0.9%: Wall Street losses and rising bond yields

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2024-02-06

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Australian shares declined as a response to Wall Street losses and rising bond yields following Federal Reserve Chairman Jerome Powell's statements that a rate cut is not imminent and expectations for multiple cuts through 2024 were too high. The probability of a rate cut in March dropped to below 15%, but traders still anticipate a possible cut in May, with a 54.5% probability, while the US 10-year Treasury yield increased to 4.16%.

The S&P/ASX 200 is 0.86 per cent lower at 7,560.10.

The SPI futures are pointing to a fall of 69 points.

Best and worst performers

The best-performing sector is Consumer Staples, up 0.16 per cent. The worst-performing sector is Information Technology, down 2.15 per cent.

The best-performing large cap is Meridian Energy (ASX:MEZ), trading 4.38 per cent higher at $5.24. It is followed by shares in GQG Partners (ASX:GQG) and Lynas Rare Earths (ASX:LYC).

The worst-performing large cap is Cochlear (ASX:COH), trading 5.73 per cent lower at $290.77. It is followed by shares in WiseTech Global (ASX:WTC) and South32 (ASX:S32).

Commodities and the dollar

Gold is trading at US$2041.70 an ounce.

Iron ore is 0.6 per cent lower at US$127.20 a tonne.

Iron ore futures are pointing to a 1.5 per cent fall.

One Australian dollar is buying 64.83 US cents.

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