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The benchmark ASX 200 lowered on Thursday by 40.70 points or 0.46 per cent to 8,885.50, while the broader All Ordinaries traded in the red down 39.90 points or 0.43 per cent to 9,178.90. Australia’s dollar seesawed on Thursday and at the time of writing was buying 65.93 US cents at the end. The falls were broadbased with seven of the 11 sectors finishing in red, led by consumer discretionary stocks which slumped more than 4 per cent in a single day of trading. Wesfarmers led the decline of the major retailers down 7.05 per cent to $86.13, while JB Hi-Fi dropped 4.47 per cent to $108.45 and Super Retail Group fell 2.58 per cent to $16.24. The fall in retail giant Wesfarmers followed the business warning the cost of living crunch is still being felt by its customers and businesses, even as the owner of Bunnings and Kmart delivered another record profit after tax, excluding significant items of $2.7bn. JB Hi-Fi also slipped despite announcing sales were up 6 per cent compared to 4.9 per cent over the prior corresponding period. Information technology shares also slumped with Xero falling 2.88 per cent to $146.42, while WiseTech Global dropped 2.56 per cent to $70.37 and Technology One slipped 0.81 per cent to $36.91. Weighing on trading sentiment was fears interest rates will remain higher for longer both in Australia and abroad. EQ Economics and Judo Bank chief economic adviser Warren Hogan warned the next interest rate move is more likely to be an increase over another rate cut. “Thinking the next move in interest rates is down is completely inappropriate, as inflation heads above the RBA target band and also the economy grinds out a recovery,” he told SkyNews. Just a day after Australia’s hotter than expected inflation report killed off chances of a rate cut domestically, the US Federal Reserve came out with its own cautious approach to interest rates. Fed chairman Jerome Powell announced an interest rate cut for October overnight but was quick to quash talks of back-to-back rate relief. Morningstar chief multi-asset strategist Dominic Pappalardo said the share markets were somewhat muted to the announcement. “Notably, there was no mention of Tariffs in the statement suggesting the Fed’s focus on their impact may be waning,” he said. “While the outcome of today’s meeting was nearly a foregone conclusion, the future path or rates into 2026 remains much less clear. In other company news Coles shares slumped 2.64 per cent to $22.11 despite the major supermarket announcing strong quarterly earnings. Shares in Woolworths climbed 3.33 per cent to $28.53. Lithium miners also had a strong day, on an investment note by JP Morgan which suggested the price of the commodity would rise. The top two gainers on the ASX 200 were both lithium miners with diversified resources company Mineral Resources soared 13.73 per cent to $48.20, while Liontown Resources leapt 11.16 per cent to $1.145. Wesfarmers was the biggest laggard on the ASX 20, while Data 3 also slumped 6.92 per cent to $8.879 and buy now pay later giant Block, dropped 4.96 per cent to $115.27.
