Market Wrap / Powell scares Santa

The local market had its worst session in months Thursday, sparked by a sell-off on Wall Street after the Federal Reserve signalled a slower pace of rate cuts in 2025.The S&P/ASX 200 closed lower by 141.20 points or 1.70% to 8168.20, to reach a five-week low, with all 11 sectors in the red.The materials sector fell 2.1% as iron ore futures hit a one-week low. ANZ shares hit their lowest level since mid-August after outgoing CEO Shayne Elliott forfeited his long-term remuneration due to shareholder backlash. 38% of shareholders voted against his $3.2 million payout, when only 25% of shareholder votes were needed to veto it. The overall financial sector fell 1.9%.Heading the other way was Mesoblast, which soared more than 50% after the US FDA approved its cell therapy Ryoncil.

A near $77 million injection from Germany’s Volkswagen saw lithium miner Patriot Battery Metals climb around 16%.Incitec Pivot shares fell 2.9% after reporting a 2024 $311 million net loss.

Elsewhere, AGL Energy shares dropped 0.7% after the energy and telco provider was fined $25 million by the Federal Court over a breach of the energy retail rules. 

The Yen fell after the Bank of Japan kept rates on hold. The dollar held firm across the board amid the Fed’s rate decision while the Aussie dollar held near a two year low.