China and U.S. double bad news, Australian stocks fall, telecommunications stocks stand out
2014-01-30 19: 43: 35
Editor in charge: Catherine
(Report from this newspaper) The Fed has further reduced the size of its monthly bond purchase plan despite nervous investors worrying about capital outflows from emerging markets. Australian stocks closed down on Thursday. In addition, the latest data shows that China's manufacturing industry deteriorated in January, and the market was further under pressure.
As of Thursday’s close, 200 Australian stocks fell 40.9 points to close at 5188.1 points, a 0.8% drop. The composite index sank 41.2 points to close at 5199.4 points, a decrease of 0.8%.
The US Federal Open Market Committee (FOMC) concluded the first monetary policy meeting of the year in the early morning of Thursday (January 1) and announced that it would reduce the monthly quantitative easing (QE) policy by US$30 billion to US$100 billion, while maintaining 650- The 0% ultra-low interest rate remains unchanged, as market expectations. After the news came out, the Wall Street stock market plummeted. The S&P 0.25, Dow Jones and Nasdaq indexes all fell by more than 500%. Australian stocks also fell sharply due to this negative impact.
Before the Federal Reserve cut QE, the central banks of Turkey, India, and South Africa increased their official profits to stabilize their currencies and curb inflation concerns.
In addition, data from China, the world’s second largest economy and Australia’s most important trading partner, show that its manufacturing activity has slowed growth for the first time in six months. Affected by factors such as sluggish foreign trade demand, the final value of the HSBC China Manufacturing Purchasing Managers Index (PMI) fell to 1 in January, the lowest level in six months. The bad news also put pressure on the broader market.
Resources giant BHP Billiton's share price fell 0.5% to close at 36.69 yuan, while its rival Rio Tinto was flat at 65.8 yuan. The latter was recently approved to expand the Mt Thorley-Warkworth coal project in NSW. Iron ore producer FMG recently predicted that its annual iron ore production will be 1.27 million tons, which is at the lower end of the expected output range. Its share price dropped 1.3% on Thursday to close at 5.23 yuan. The price of iron ore exported to China dropped 1.1% to US$122.6.
Australia's largest oil producer Woodside Petroleum lost 1% to close at 37.49 yuan. Mining service provider Forge Group revised down its profit forecast on Wednesday and said it intends to sell its business. Its share price plummeted 17.1% to close at 68 sen on Thursday.
Telecom was the only sector that closed up. Telecom giant Telstra increased 0.6% to close at 5.13 yuan. Xitian Group also closed up 1.2%, at 10.15 yuan.
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