Canberra: Australian shares were hammered on Tuesday as a sell-off set in on account of fears regarding the independence of the Federal Reserve following U.S. President Donald Trump's latest verbal tirade at Fed Chair Jerome Powell.
S&P/ASX 200 ended down 0.5 percent after trading resumed from a two-day break, ending at 7,778.1 points by 0103 GMT, a marked decrease from the previous session where the index had gained 0.8 percent.
Trump's remarks accusing Powell of not doing enough to lower interest rates set off fears that perhaps the Fed might not be able to function independently from political influence. Trump argued that the U.S. economy would slow down unless immediate cuts were made to interest rates, whilst Powell contended that any adjustment to rates would need to come after a determination as to whether Trump's tariffs might trigger persistent inflation.
These tensions resulted in global markets selling off, and the aftershocks were felt in Australia as every major sector fell. The mining sector, including the likes of BHP and Rio Tinto, is down 0.2 percent, while the financial sector, including the "Big Four" banks, lost as much as 0.9 percent each.
Energy stocks had a fall of 1.6 percent on the back of a decline in oil prices. Conversely, gold stocks rose by 1.5 percent as investors sought safe-haven assets amid rising uncertainty.
Meanwhile, in corporate news, Japanese investment bank Nomura caused a stir with its auction purchase of Macquarie Group's public asset management business for $1.8 billion, signifying a wider trend of Japanese companies on the international expansion drive.
Politically, early voting has commenced for the Australian federal election, with the center-left Labor party holding a narrow lead over the opposition coalition.
[Source Credit: Business Recorder]
