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FIVE at FIVE AU: ASX follows Wall Street lower on weak 2025 US rate outlook

Published 19/12/2024, 04:04 pm
© Reuters.  FIVE at FIVE AU: ASX follows Wall Street lower on weak 2025 US rate outlook
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The ASX had a shocker of a session today — its worst day in months with the benchmark index losing 1.7% to 8,168 points and all 11 GICS sectors finishing in the red.

The local market followed a sell-off on Wall Street overnight, along with a steep drop in gold and iron ore prices.

The US Federal Reserve opted to cut its benchmark policy rate by 25 basis points to a target range of 4.25%–4.50%.

While this met market expectations, updated economic projections from the Federal Open Market Committee (FOMC) pointed to an expected economic slowdown next year, with the suggestion of a slower pace of cuts in 2025. It now expects only two rate reductions expected next year, down from the four previously forecast.

The losses on Wall Street appear to have triggered profit-taking by local investors in some of the ASX’s best-performing companies in the past 12 months. The day’s worst performers, in the ASX 200, included Hub24, James Hardie, Block, Pro Medicus, HMC Capital, Pinnacle, Zip (ASX:ZIP), Westgold Resources, Megaport and Deep Yellow.

Local Tech stocks were particularly hard hit today, with the sector down more than 2.5% as it followed the tech-heavy Nasdaq index, which tumbled 3.6%.

Lower commodity prices were felt in the resources space — the Materials sector fell 2%.

Peninsula Energy higher

Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) was as much as 10.8% higher today to $1.18 on announcing the restart of uranium production from its Lance Project in the US while Ora Banda Mining Ltd (ASX:OBM) rose 3.11% to a daily high of $$0.665 after intersecting the first ore at the Sand King Underground Mine.

Other small caps to rise today were Anteris Technologies Global Corp (ASX:AVR, OTC:AMEUF), which was as much as 6.52% higher to $9.15, Nova Minerals Ltd (ASX:NVA, NASDAQ:NVA) hit $0.29, an increase of 5.46% on the previous close, Olympio Metals Ltd (ASX:OLY, OTC:COPGF) moved up by 5.41% to $0.039, Arovella Therapeutics Ltd (ASX:ALA) reached $0.195, a rise of 2.94% and Tolu Minerals Ltd (ASX:TOK) lifted 1.91% to $0.80.

Shareholders reject executive pay packages

Nearly 40% of shareholders opposed ANZ’s executive pay scheme at the company’s annual general meeting today — exceeding the 25% threshold needed to reject the resolution.

Almost 50% voted against the long-term pay package for CEO Shayne Elliot. ANZ Chair Paul O'Sullivan acknowledged the strong investor sentiment, confirming that Elliot has decided to forfeit a long-term performance bonus worth A$3.2 million. ANZ ended 2.73% lower at $28.56 per share.

Shareholders in agribusiness Elders (-1.80% to $7.09) have also voted against its executive pay package — for a second year running — at the company’s AGM today. Shareholders hit back at news CEO Mark Allison was re-hired after the company had signalled that he would be stepping down.

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