Australian shares close at near 1-month low as commodities weigh

Reuters

Australian shares close at near 1-month low as commodities weigh

Dec 16, 2024 at 5:42 am GMT

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AXJO falls for fifth straight session

Mining stocks drop to 1-month low

DigiCo REIT slumps in second day of trade

Updates to market close

By Aaditya GovindRao

Dec 16 (Reuters) -Australian shares extended losses to the fifth straight session to fall to a one-month closing low on Monday, with commodity stocks dragging down the resource-heavy bourse, while investors awaited the U.S. Federal reserve's policy meeting this week.

The S&P/ASX 200 index .AXJO slipped 0.6% to end at 8,249.5points, its lowest closing level since Nov. 18.

The Fed is widely expected to ease interest rates at its Dec. 17-18 meeting, with traders seeing a nearly 97% chance of a 25-basis-points cut, CME's FedWatch Tool showed, while indicating chances of a rate-cut pause in January.

Domestically, miners .AXMM posted their fourth straight session of declines to end 2.2% lower at a one-month low, making them the top laggards on the benchmark.

Sector majors BHP BHP.AX and Fortescue FMG.AX shed 2% and 3.8%,respectively.

Iron ore futures slid to their lowest in a week, pressured by faltering near-term demand and remaining bleak property data in top consumer China. IRONORE/

"But that narrative could change quickly if China cuts interest rates soon. It probably will too, which will delight commodity investors," Jessica Amir, a market strategist at online trading platform Moomoo, said.

Gold miners .AXGD slipped 2.8% as bullion edged higher, but failed to recoup Friday's declines. GOL/

Northern Star Resources NST.AX slipped 2.1% andEvolution Mining EVN.AX eased 2.2%.

Energy stocks .AXEJ fell 0.7% on easing oil prices. O/R

Bucking the trend, financials .AXFJ, the heaviest-weighted sector on the benchmark, gained 0.2%.

Separately, data centre landlord DigiCo Infrastructure REIT DGT.AX closed 5.5% lower in its second day of trade after its A$2 billion ($1.28 billion) listing.

Asset manager HMC Capital HMC.AX, which holds an 18.2% stake in DigiCo, dropped 13.7%to emerge as the top loser on the index.

Meanwhile, New Zealand's benchmark S&P/NZX 50 index .NZ50 gained 0.3% to finish at 12,797.33 points.

($1 = 1.5676 Australian dollars)

Reporting by Aaditya Govind Rao in Bengaluru; Editing by Sumana Nandy

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