AU Morning Wrap: Health care and tech lead losses as ASX extends slide

Wall Street Summary
A "wait and see" session ahead of tonight's Federal Reserve policy update saw two of the three major indices shed early gains. Treasury yields continued to surge ahead of a meeting that could see the central bank raise its benchmark rate by up to 100 basis points.

The $S&P 500 Index(.SPX.US)$ fell 14 points or 0.38 per cent. The $Dow Jones Industrial Average(.DJI.US)$ finished 152 points or 0.5 per cent lower after being up as much as 170 points and down as much as 370 points. The $Nasdaq Composite Index(.IXIC.US)$ held on to a gain of 19 points or 0.18 per cent.

AU Market Watch
Australia's S&P/ASX 200 looks likely to add to its steep losses of the previous session after U.S. stocks continued to slide ahead of the Federal Reserve's latest monetary policy decision. ASX futures are down by 0.1%, pointing to further declines on top of Tuesday's 3.6% fall. The benchmark index's worst daily performance since May 2020 pulled it into correction territory.

Australian shares opened lower this morning. The $S&P/ASX 200(.XJO.AU)$ lost 0.59 per cent to 6646 as of 10:16 am.

Stocks to Watch
$Ampol Ltd(ALD.AU)$: Ampol is raising $150 million of 60-year subordinated notes callable in six years paying a margin of 3.8 per cent over the bank bill swap rate. Proceeds will be used for general purposes.

Ex-dividend: $Plato Income Maximiser Ltd(PL8.AU)$, $Tower Ltd(TWR.AU)$

Dividends paid: $Infratil Ltd(IFT.AU)$, $Pengana International Equities Limited(PIA.AU)$, $Qualitas Real Estate Income Fund(QRI.AU)$, $Waterco Ltd(WAT.AU)$

Commodities
• Iron ore is on a 5-day losing streak with buying interest in the seaborne market waning in response to market fluctuations and an uncertain demand outlook, sources told Fastmarkets.
• Oil dipped below US$120 after the US Department of Energy announced plans to sell up to 45m barrels of crude oil from the Strategic Petroleum Reserve.
• Gold is trying to stabilise around US$1,800 ahead of Thursday's Fed interest rate decision.

Source: Dow Jones Newswires, AFR