27 Jan , 2022 By : monika singh
Australian shares fell into correction territory on Thursday, driven by tech and gold stocks after the U.S. Federal Reserve signalled interest rate hikes as early as March, with investors now looking to next week's Reserve Bank of Australia meeting.
The benchmark S&P/ASX 200 index closed lower for a fourth straight day, down 1.8% at 6,838.3 - its lowest since April last year. The index is now more than 10?low its August 2021 high and is on track for its worst month since March 2020.
"It looks like next Tuesday's meeting from the RBA is going to be very important and interesting to see how they change their commentary," Steven Daghlian, a CommSec market analyst, said.
Already battered, Australia's tech stocks ended the day 5.1% lower, taking losses so far this year to around 20%.
Both Xero and Seek plunged close to 7%.
Gold stocks dived 6.5%, with top miner Newcrest falling 5.9%.
On the other hand, supported by a stronger U.S. dollar and tensions between Russia and the West over Ukraine, oil prices broke past $90 a barrel at one point for the first time since 2014.
The lift helped Australia's energy stocks. Woodside Petroleum Ltd ended 2.5% higher even after the company said it would take a $138 million hit as it exits Myanmar.
New Zealand's S&P/NZX 50 index fell 1.1% to 12,050.32, a day after it snapped a five-day run of losses.
Annual inflation hit a three-decade high in the fourth quarter, cementing a view that the central bank will look to tighten monetary policy further next month.
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