Market Wrap / Monday malaise

The local share market started the week in the red, as investors stayed cautious ahead of the Federal Reserve's policy meeting, where a rate cut is widely expected. Traders estimate a 97% chance of a Fed rate cut this week but expect a pause in January.

The S&P/ASX 200 index dropped 0.6% to 8249.50 after closing 0.4% lower on Friday. 

Mining stocks fell 2.2% as iron ore prices declined amid concerns over China's economy. Giants BHP, Rio Tinto, and Fortescue lost between 1-2%. Gold stocks also fell following weaker bullion prices. Northern Star and Evolution Mining dropped 2.1% and 2.2%, respectively. 

Energy stocks dipped 0.9% with Woodside and Santos falling slightly. 

Financial stocks remained flat.DigiCo’s stock continued to drop in its second day on the ASX, falling 5.5% to $4.30, well below its $5 IPO price. HMC Capital, which owns 32% of DigiCo, also slipped 13.7%. 

Ventia shares fell 9.2% after executives were implicated in an ACCC price-fixing case. The stock has dropped more than 18% over the past five days.

Star Entertainment shares rose 5.1% despite losing its second Gold Coast CEO in seven months late last week.

And Affinity Equity Partners secured funding for its $965 million purchase of Healius’s Lumus Imaging business. Healius shares jumped 2.2%.