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Australia’s shares have dipped on the market this morning, poised to end a three-week winning streak.
The market has been pulled down by tech companies mirroring a sluggish overnight session on Wall Street. All sectors are losing ground as the market comes under pressure.
In an all-sector sell-off, the S&P/ASX 200 fell 0.97 per cent, or 72.3 points, to 7402.10 points.
What’s driving the market
US markets fell overnight, dragged down by technology firms as investors continue to be concerned about the timing and scope of the US Federal Reserve’s tightening cycle.
This week, Federal Reserve policymakers hinted that they will begin hiking interest rates in the United States in March.
Fed Governor Lael Brainard became the latest and most senior US central banker on Thursday to warn that the present era of near-zero interest rates will end after two pandemic-shook years.
At the close of the US markets, the dominant colour was red. The S&P 500 had lost 67 points (-1.42 per cent) to 4,659 points, the Dow Jones Industrial Average had slipped 175 points (-0.48 per cent) to 36,115 and the Nasdaq tumbled 381 points (-2.51 per cent) to 14,806.
Back home, the number of new COVID-19 infections remain at an all-time high. Authorities were obliged to relax quarantine regulations for more personnel as the rise increased hospitalisation rates and put more burden on supply networks.
According to data issued today by the Australian Bureau of Statistics, the value of new loan commitments for housing increased by 6.3 per cent to $31.4 billion in November 2021 (seasonally adjusted), following three months of declines. New personal lending also lifted, rising by two per cent in the month.
Going up
No sector has managed gains on the market this morning, but a few stocks have enjoyed a bumper session.
Adrea Resources was up 51 per cent after making a nickel sulphide discovery on an intact felsic footwall contact at its Kalpini project 70km northeast of Kalgoorlie, Western Australia.
Fellow material players, Torian and Zenith were up on the market, gaining 27.3 per cent and 22.4 per cent, respectively.
Tech stock Brainchip continued its stellar run today. BrainChip tapped LDA Capital for a fresh funding boost under a put option agreement first signed by the two companies back in 2020. Shares have risen 32 per cent on the back of the announcement. Stocks in BRN have more than doubled in value over the first two weeks of 2022, hitting an all-time high.
Fellow technology stock Clearvue Technologies also enjoyed gains on the market, rising by 22.2 per cent.
Going down
All sectors are in the red today as the ASX swims in a sea of red. The tech sector have led losses on the market today, with the sector dropping 3.29 per cent.
Xero was also in the red, down 3.66 per cent. Afterpay felt more pain on the market today, falling 8.29 per cent ahead of its expected delisting next week.
Doriemus wasdown 20.7 per cent, Coppermoly was down 14.3 per cent while Shree Minerals and Castillo are both down 13.2 per cent.
Big material players have posted losses, BHP, FMG, Rio, James Hardie and South32 all posted marginal losses by midday trade.
On the Financial front, CBA, NAB, MQG and ANZ are all down.
Health Care stocks are also in the red, with big players CSL, Sonic Healthcare, Fisher & Paykel and Ramsay all down.
Other markets
Oil was down, Brent crude has fallen 0.17 per cent to US$84.33 a barrel.
The dollar was down 0.07 per cent to 72.75 US cents.
Gold rose, rising to US$1,823.30 an ounce.
US futures moved down. S&P 500 futures were recently 2.25 points or 0.05 per cent.
