Foreign Markets

Australia stock market finished lower for fourth straight session on Wednesday, 20 September 2023, after the Federal Reserve stiffened its hawkish stance with a further interest rate hike projected by the year-end.

The U.S. Federal Reserve kept interest rates unchanged on Wednesday as widely expected, but signalled another hike by the year-end and much tighter monetary policy through 2024 than previously expected to fight high inflation.

At closing bell, the benchmark S&P/ASX200 index was down 96.10 points, or 1.37%, to 7,065.23. The broader All Ordinaries index dropped 95.35 points, or 1.3%, to 7,266.60.

All 11 sectors ended lower along with the S&P/ASX 200 Index. Energy was the bottom performing sector, falling 1.96%, followed by financial (down 1.76%) and materials (down 1.17%) sectors.

Shares of materials declined with lithium miners Allkem (down 4.6%), Pilbara Minerals (down 3.9%) and IGO (down 4.1%) all dropping lower. Sector majors BHP Group and Fortescue declined 0.7% and 0.2%, respectively.

Interest rate-sensitive financial stocks fell, with the so-called big four banks down between 0.3% and 0.7%.

Energy stocks were lower on weak oil prices. Woodside (down 2.6%) and Santos (down 1.4%) closed weaker,

Shares of Transurban Group (down 3.7%) dropped after the competition watchdog blocked the company's bid for another toll road in Melbourne,

Shares of drinks, pubs and pokies giant Endeavour Group's slipped 1.9% after the Australian Competition and Consumer Commission flagged preliminary concerns about its proposed acquisition of Rye Hotel in Victoria.

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