The Australian sharemarket finished lower on Wednesday, dragged down by real estate, mining, and consumer discretionary stocks, as investors positioned ahead of the United States Federal Reserve’s policy decision.
The Fed is widely expected to cut interest rates by 25 basis points when it announces its verdict at 4 am AEST on Thursday. Projections from policymakers are also expected to reinforce market expectations for two more similar moves before year-end.
The S&P/ASX 200 Index slipped 59.2 points or 0.7% to 8,818.5, with eight of the 11 sectors closing in the red.
Real estate investment trusts led the declines, with GPT Group sliding 2.4% after naming Citigroup’s Tony Osmond as an independent non-executive director.
Goodman Group lost 0.9%, Mirvac and Charter Hall lost 1.7% apiece, while Scentre Group slipped 2.2%
Consumer discretionary companies retreated, with Wesfarmers down 1.9%, Tabcorp falling 2.4%, and Guzman y Gomez losing 2.7%.
Materials stocks were also weaker, as Rio Tinto fell 1%, BHP dipped 1.1%, and Fortescue Metals closed 1.3% lower.
Gold producers retreated despite bullion briefly surpassing US$3,700 an ounce for the first time.
Northern Star Resources lost 2.1%, Newmont dipped 1.1%, and Evolution Mining fell 1.3%.
By contrast, DroneShield rose 2.1% after securing A$7.9 million in new contracts with the U.S. Department of Defense.
On the bond markets, yields firmed marginally, with the 10-year rate up 0.1% to 4.223% and the 2-year up 0.2% to 3.376%.
