Stock exchange books four-day losing streak as rate cut jitters continue

The local benchmark continued to lose ground amid continued uncertainty over the timing and depth of rate cuts.

The Australian share market extended its four-day losing streak on Monday as investors awaited fresh economic data for further clues on the direction of the monetary policy.

At the closing bell, the benchmark S&P/ASX200 had slumped 0.5 per cent, or 37.6 points, to reach 7,451.5, with all 11 industry sectors in the red.

Meanwhile, the broader All Ordinaries shed a similar amount to 7,676.8.

The Australian dollar rose against its US counterpart, climbing to US67.02c by the close of trading.

New US data has put doubts on central banks, including the RBA, cutting rates any time soon. Photo: NCA Newswire

Stronger-than-expected US jobs data, released over the weekend, has heightened concerns among traders that the Federal Reserve and other central banks, including Australia’s Reserve Bank, will keep interest rates higher for longer.

Capital.com senior financial market analyst Kyle Rodda said equities were increasingly focused on the speed and depth at which central banks ease monetary policy.

“The primary theme in the markets is the shifting expectations regarding the pace and timing of interest rate cuts this year,” Mr Rodda said.

“After Friday’s mixed batch of data and ahead of inflation figures at the end of the week, the theme will likely be the marginal driver of most markets.”

Money markets are currently priced for a RBA rate cut by September, having previously priced in a cut in June.

Locally, energy stocks were the top performers, unchanged at the close of trading. The sector was buoyed by uranium miners which rallied after the UK government announced a £300m ($A568.8m) investment to produce enriched uranium needed to supply new nuclear projects.

Boss Energy added 8.5 per cent to $4.59 and Paladin Energy climbed 3.5 per cent to $1.05.

The materials sector was the biggest drag on the benchmark, slipping 0.7 per cent, as iron ore futures slumped 1.1 per cent to $US137 per tonne ($A204.51) in trading on the Singapore exchange for the February contract.

ASX heavyweight BHP sank 0.8 per cent to $48.66, while Rio Tinto fell by 0.6 per cent to $131.52 and Fortescue shed 1.6 per cent to $27.75.

Iron ore miners slipped as price for the commodity slipped to $US137 per tonne on the Singapore exchange. Picture: supplied.

In company news, IGA and Mitre10 parent Metcash announced that JB Hi-Fi boss Richard Murray has been appointed to succeed Paul Dumbrell as chief executive of its Total Tools business. Kylie Wallbridge has been appointed as the head of its liquor division. Shares added 1.4 per cent to $3.55

In its first session on the ASX, Kali Metals rocketed 74 per cent to reach 44c a share. The lithium hopeful, with projects in Western Australia, NSW and Victoria, held an initial public offering last week that closed in less than 20 minutes, and was hugely oversubscribed.

Software-as-a-service provider Whispir fell 2.7 per cent to 55c after it said it was unlikely that a superior proposal would be made before the end of the offer period under a bid by Soprano Design Technology. Soprano’s offer for the company is worth 55c per share.

Core Lithium, which on Friday mothballed its operations at its Finniss lithium mine in the Northern Territory in light of “weak market conditions” for the commodity, extended its losses. Shares traded 17.4 per cent lower to 19c.

Embattled money manager Magellan Financial dropped 7.4 per cent to $8.94 after analysts at Citi downgraded the stock to a sell rating.