The Australian share market tumbled lower to its lowest level in 11 months on Wednesday following a broad sell-off on Wall Street overnight.
Stronger-than-expected job vacancies data, which showed the number of available positions climbed to 9.61 million in August, up from 9 million in July, fuelled traders’ fears that the US Federal Reserve will keep interest rates higher for longer.
The ASX200 plunged another 0.8 per cent, or 53.2 points, to close at 6,890.2, while the broader All Ordinaries sank 0.8 per cent, or 58.8 points, to sit at 7,082.2 at the closing bell.
Ten of 11 industry sectors finished in the red with Utilities stocks the sole winners on the benchmark, up 0.3 per cent.
Financials were the worst performing stocks, with shares in the big four banks all falling lower. ANZ dropped 1.18 per cent to $24.95, Commonwealth Bank fell 1.7 per cent to $98.06, NAB slipped 1.5 per cent to $28.36 and Westpac was down 1.1 per cent to $20.81.
Fears of prolonged high rates were not helped by another hawkish pause from the Reserve Bank of New Zealand who echoed the RBA’s latest move and kept rates on hold at 5.5 per cent for the fourth consecutive month.
“While the imbalance between supply and demand continues to moderate in the New Zealand economy, a prolonged period of subdued activity is required to reduce inflationary pressure,” the statement accompanying the decision read.
Back home, bond traders now ascribe a one-in-three chance the RBA board will raise the cash rate by 4.35 per cent at its November meeting, and a 57 per cent chance by December 5.
In company news, shares in lithium miner Liontown Resources climbed 0.7 per cent higher to $2.97 a share after mining magnate Gina Rinehart increased her stake in the company to 14.7 per cent.
Communications giant TPG Telecom dropped 2.2 per cent to $5.25 a share after it announced that discussions with Vocus on a takeover bid for its non-fibre assets were ongoing.
Mixed miner Mineral Resources sank 1.3 per cent to $63.33 after the company finalised a $US1.1 billion debt offer.
Shares in Qantas traded at their lowest level since October 3 2022, trading at $4.93 at the closing bell after losing a further 1.8 per cent over Wednesday’s session as controversial chair Richard Goyder continues to hang on to his job.