Australia Market tumbles 3.6%

14 Jun 2022 , 04:40 PM

Australian share market finished session lower on Tuesday, 14 June 2022, catch-up with the losses internationally on Friday and Monday, as a strong risk-averse mood amid concerns of interest rate hikes leading to a global recession. Meanwhile, concerns about iron ore demand in the worlds largest steel producer due to the re-imposition of restrictions in Beijing, Shanghai and other places also weighed down sentiments. At closing bell, the benchmark S&P/ASX200 decreased by 245.95 points, or 3.55%, to 6,686.03. The broader All Ordinaries index declined by 263.96 points, or 3.69%, to 6,881.21. The top performing stocks in this index were POLYNOVO and DOMINOS PIZZA, up 7.8% and 2% respectively. The bottom performing stocks in this index were ZIP CO and CHALICE MINING, down 15.87% and 14.20% respectively. The Federal Reserve is scheduled to announce its latest monetary policy decision on Wednesday, with the central bank expected to continuing raising interest rates in an effort to combat inflation. The Fed is expected to hike interest rates by 50 basis points when it concludes its two-day meeting on Wednesday, and traders are piling into bets for a potential 75-basis-point hike in the coming months. One worry is that an aggressive push higher on rates by the Fed could send the economy into recession. Beijing is testing millions to stem the spread from a cluster infection at a 24-hour bar, with Chinas vice premier saying COVID prevention and control needs to be strengthened. Shares of materials and resources companies declined, as iron ore prices weakened. Heavyweights BHP, Rio Tinto and Fortescue Metals fell between 4.2% and 8.5%. Shares of financials were also down, with the Big Four banks sliding 2.7%-5.2%. CURRENCY NEWS: The Australian dollar was at $0.6954 after yesterdays fall from above $0.70. Powered by Capital Market – Live News