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Australia shares dip after Fed minutes; NZ gains

Published 13/10/2016, 12:03 pm
© Reuters.  Australia shares dip after Fed minutes; NZ gains
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By Shashwat Pradhan

Oct 13 (Reuters) - Australian shares pulled back on Thursday after an uninspiring session on Wall Street overnight and as minutes from the last Federal Reserve meeting suggested policymakers were on track to raise interest rates by December.

The S&P/ASX 200 index .AXJO slipped 23.02 points, or 0.4 percent to 5451.6 by 0008 GMT.

"Several members judged that it would be appropriate to increase the target range for the federal funds rate relatively soon if economic developments unfolded about as ... expected," the Fed said in the minutes. minutes of the Sept. 20-21 meeting didn't shake market expectations for the next Fed rate hike to occur in December, they also showed the depth of division over timing.

"The minutes were sort of mixed, as there was still a majority that did not want a raise at that time and post that meeting result in September the payrolls have come in a lot more lower than expected," said Will Keenan, General Manager of Direct Equities Research at Lonsec.

Market sentiment was also affected by declines in oil prices on Wednesday after OPEC reported its September oil output hit eight-year highs, offsetting optimism over the group's pledge to bring a global crude glut under control. O/R

Oil Search Ltd OSH.AX fell 1.5 percent while Origin Energy ORG.AX was down 1.4 percent, dragging the energy index .AXEJ down.

Global miners BHP Billiton (LON:BLT) Ltd BHP.AX and Rio Tinto (LON:RIO) Ltd RIO.AX lost 1.4 percent and 1.8 percent, respectively.

Rare earths miner Iluka Resources Ltd ILU.AX fell as much as 2.5 percent, touching a three-week low, after reporting a decline in September-quarter mineral sands production.

Healthcare stocks were also pressured. Sonic Healthcare SHL.AX shed 1 percent while blood-products maker CSL Ltd CSL.AX slipped as much as 1.6 percent, its biggest intra-day percentage fall in a month.

Bucking the trend, gold stocks .AXGD climbed 1 percent after the yellow metal held modest gains on Wednesday. GOL/ Gold miner Evolution Mining EVN.AX was among the top gainers on the index, up 2.6 percent.

New Zealand's benchmark S&P/NZX 50 index .NZ50 ticked up 0.3 percent, or 23.99 points, to 7131.45, supported by materials and telecom stocks, which accounted for more than half of the gains.

Fletcher Building was the top gainer on the benchmark, rising as much as 3.9 percent - its biggest single day percentage gain in eight weeks. Spark New Zealand SPK.NZ rose 1 percent.

For more individual stocks activity click on STXBZ

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