ASX weighed down by US rate hike concerns

SYDNEY, AAP – Interest rate-sensitive technology shares were faring worst on the Australian share market after Wall Street investors worried about bigger rate hikes to curb inflation.

Technology shares were down two per cent on a slightly lower and mixed ASX on Thursday.

The heavyweight categories of financials and materials were both lower, but by less than one per cent.

The benchmark S&P/ASX200 index was down 29.1 points, or 0.38 per cent, to 7461 at 1200 AEST.

The All Ordinaries index was lower by 32.3 points, or 0.41 per cent, to 7756.

The US S&P 500 fell one per cent overnight after details from last month’s meeting of US Federal Reserve policymakers showed the bank intends to be aggressive in efforts to fight inflation.

Policymakers agreed to begin cutting the central bank’s stockpile of bonds and mortgage-backed securities by about $US95 billion a month, starting in May. That is more than some investors expected.

Meanwhile the International Energy Agency, which includes large consuming nations, said it would release oil from reserves to counter tightening supply. Russia’s war on Ukraine has sent prices soaring. Brent crude traded higher to US$103 per barrel.

ASX energy shares were down less than half a per cent.

In company news, Fortescue has raised $US1.5 billion from senior notes and will use the funds to reduce carbon emissions.

The miner offered interest rates of five and six per cent on the eight and 10-year investments.

Fortescue was best of the big miners. It rose one per cent to $21.91.

Former AMP chair Catherine Brenner, who presided over the company’s fee-for-no-service scandal uncovered by the banking royal commission, has been elected to the board of Westfield owner Scentre Group.

Preliminary results from the meeting showed 82 per cent of votes were cast for Ms Brenner.

Scentre also avoided a second “strike” against its executive pay report after security-holders voted in favour.

Scentre was up almost one per cent to $3.09.

Fund manager Magellan was soaring after showing outflows were slowing.

The company had $70 billion in funds under management at the end of last month.

Magellan was up 10 per cent to $17.04.

The big banks were lower by less than one per cent. ANZ fared worst of the big four. It was down almost one per cent to $27.10.

Gold Coast theme park operator Ardent Leisure is selling its US business for US$835 million.

The Main Event business, which includes bowling centres, is going to RedBird Capital Partners.

Ardent will use the proceeds to repay debts to Queensland Treasury Corporation and a deferred settlement payable to the tax office.

Ardent was up six per cent to $1.38.

The Australian dollar was buying 74.96 US cents at 1200 AEST, lower from 75.72 US cents at Wednesday’s close.