Australian Market Significantly Lower

(RTTNews) - The Australian stock market is significantly lower on Wednesday, snapping a four-session winning streak, with the benchmark S&P/ASX 200 staying above the 7,300 level, following the broadly negative cues from global markets overnight, with weakness across most sectors, led by technology, mining and energy stocks.

The markets are reacting to US Federal Reserve Chair Jerome Powell's highly anticipated semiannual monetary policy testimony before the Senate Banking Committee. Powell warned interest rates will likely remain higher for longer than previously expected to fight inflation.

The benchmark S&P/ASX 200 Index is losing 53.30 points or 0.72 percent to 7,311.40, after hitting a low of 7,288.70 earlier. The broader All Ordinaries Index is down 54.80 points or 0.73 percent to 7,507.90. Australian stocks ended notably higher on Tuesday.

Among major miners, BHP Group, Fortescue Metals and Rio Tinto are edging down 0.2 to 0.5 percent each, while Mineral Resources is losing almost 2 percent. OZ Minerals is edging up 0.1 percent. Oil stocks are mostly lower. Woodside Energy is plunging 7.5 percent, while Beach energy and Santos are losing more than 1 percent each. Origin Energy is gaining almost 1 percent.

In the tech space, Xero and Zip are losing almost 2 percent each, while Afterpay owner Block and Appen are declining more than 2 percent each. WiseTech Global is down almost 1 percent. Among the big four banks, National Australia Bank and Commonwealth Bank are losing almost 1 percent each, while ANZ Banking and Westpac are down more than 1 percent each.

Among gold miners, Newcrest Mining, Gold Road Resources and Northern Star Resources are losing more than 3 percent each, while Evolution Mining is declining almost 5 percent and Resolute Mining is down almost 2 percent.

In the currency market, the Aussie dollar is trading at $0.659 on Wednesday.

On Wall Street, stocks moved sharply lower during trading on Tuesday with remarks by Federal Reserve Chair Jerome Powell renewing concerns about the outlook for interest rates. The major averages all showed significant moves to the downside after ending Monday's trading narrowly mixed.

The major averages climbed off their worst levels late in the session but still posted steep losses. The Dow plunged 574.98 points or 1.7 percent at 32,856.46, the Nasdaq tumbled 145.40 points or 1.3 percent to 11,530.33 and the S&P 500 dove 62.05 points or 1.5 percent to 3,986.37.

The major European markets all also moved to the downside over the course of the session. While the U.K.'s FTSE 100 Index edged down by 0.1 percent, the French CAC 40 Index and the German DAX Index fell by 0.5 percent and 0.6 percent, respectively.

Crude oil prices tumbled Tuesday on renewed uncertainty about energy demand, while a surging greenback also weighed on the commodity. West Texas Intermediate Crude oil futures for April slumped $2.88 or 3.6 percent at $77.58 a barrel.