Closing Bell 3rd January: ASX falls, takes lead from weaker US markets

ASX declines in second trading day of 2024. Shares experienced a 1% decline, primarily led by the technology sector, reflecting the downturn on Wall Street amid concerns that central banks may delay interest rate cuts. The S&P/ASX 200 index retreated 1.1%, reaching 7546.5 points, while the All Ords also registered a 1.1% drop. Despite Tuesday’s close near the August 2021 peak, ten of the index’s eleven sectors saw declines, with real estate and mining exerting downward pressure. Consumer staples was the sole advancing category. Block faced significant losses, plummeting 6.7% due to its involvement in a Nasdaq sell-off. Commodity stocks, encompassing gold, iron ore, lithium, and oil, were notably impacted. Fortescue Metal shares fell 1.6%, responding to a recent iron ore supply disruption. BHP Group, Rio Tinto, Santos, and Whitehaven Coal recorded declines despite elevated iron ore prices. The Australian dollar remained stable at US67.64¢, following a 0.8% dip on Tuesday linked to heightened US dollar strength amid revised expectations for Fed rate cuts in 2024.