The ASX tumbled into the red this morning as US markets digest the latest Fed rate hike.
Both the ASX 200 and the All Ords were tracking around 0.3% down before lunchtime, weighed down by losses in the comms and materials sectors.
Overnight, New York gave up its gains as Fed chair Jerome Powell warned there are currently no rate cuts in store for 2023.
This ‘higher for longer’ approach is expected to see US interest rates land between 5.0% and 5.5% this time next year.
In commodity news, oil prices were a bright light in a sea of red overnight — crude extended its gains to around 8.3% over the last three sessions.
Meanwhile, gold and iron ore prices suffered a slight blow, but copper rose to fetch around US$3.80 a pound.
Checking in with today’s top stories, corporate watchdog ASIC and Australia’s Reserve Bank will put pressure on the ASX, ensuring it keeps the CHESS system ticking over until a suitable replacement goes live.
In other news, supermarket giant Woolworths will back speciality pet food and accessories retailer Petspiration Group in a deal worth $586 million.
Among the small caps, Tempus Resources has expanded its Elizabeth Project thanks to a new gold discovery.
And hydrogen explorer HyTerra is lining up to flow test a natural hydrogen well at its Geneva Project in Nebraska.