Australian shares were largely flat on Thursday, as losses in gold stocks offset gains in financial stocks, while Origin Energy’s shares slumped after the power producer rejected a revised “complex” bid from Brookfield.
The S&P/ASX 200 index were flat at 7,031.5 as at 0025 GMT.
The benchmark ended 0.3% higher on Wednesday.
Investors focussed on US Federal Reserve Governor Christopher Waller’s comments stating interest rate cuts by the Fed could start in months if inflation kept easing.
In Australia, data showed inflation cooled faster than expected in October, while core inflation also edged down, adding to the case against another rate hike as soon as next week. Heavyweight energy stocks fell 0.2%.
Origin Energy slid 2% to its lowest since March 27 after it said that Brookfield-EIG consortium’s new “complex” scheme for the company was not in its best interests, even as it recommended the existing offer to its shareholders.
Woodside Energy and Santos edged down 0.5% and 0.1%, respectively.
Miners also fell 0.3%, tracking extended declines in iron ore prices due to China’s price monitoring measures. Rio Tinto slipped 0.3% and BHP Group dropped 0.2%.
Among other sectors, real estate stocks declined 1.5% and health stocks dipped 0.1%. Gold stocks dropped 0.2%, with Evolution Mining down 0.4%.
Financial stocks, however, rose 0.3%, with the “Big Four” banks up between 0.1% and 0.7%.
Australian shares rebound on optimism over Fed rate pause
Technology stocks also gained 0.4% in tandem with overnight gains in Wall Street peers.
Block’s Australia-listed shares gained 0.9%, while Xero was up 0.1%.
New Zealand’s benchmark S&P/NZX 50 index rose 0.3% to 11,272.66.
The Reserve Bank of New Zealand (RBNZ) on Wednesday held its official cash rate steady, but warned that inflation remained too high and further policy tightening might be needed if price pressures did not ease.
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