Australian shares ended flat on Wednesday but achieved a new record high for the third consecutive session as investors awaited the US Federal Reserve’s anticipated interest rate cut, the first since the pandemic.
In a volatile trading day, the benchmark S&P/ASX 200 index closed up 1.2 points at a new peak of 8142 points, after reaching an intraday high of 8153.5. The All Ordinaries index also saw little change.
Investor focus was on the Fed’s interest rate decision, due early Thursday morning (AEST).
Of the 11 sectors on the ASX, five declined, with material stocks offsetting gains in utilities.
The major banks had a mixed performance. ANZ fell by 0.2% to $31.15, while National Australia Bank rose 1.4% to $39.42. Macquarie Group gained 0.6% to $229.46, as it considers selling its stake in WaveNet, a UK IT services provider, for £1.2 billion ($2.4 billion).
Mining stocks reversed early gains, tracking a decline in iron ore prices. Rio Tinto fell 0.9% to $109.74, BHP retreated 0.9% to $39.19, and Fortescue dropped 0.3% to $17.43.
In Singapore, the October iron ore futures contract fell 2.2%, nearing a break below $US90, while China’s Dalian contract for January declined more than 4% to 673.5 yuan ($US94.91) per metric tonne.
Energy shares remained stable as oil prices were influenced by geopolitical tensions, including a deadly pager attack in Lebanon. Both Brent crude and US crude fell 0.5% following two days of gains.
On the bond markets, 10-year and 2-year rates were at 3.868% and 3.532%, respectively.