Australian shares opened lower following a previous day's rally, and at 11:30am, the S&P/ASX 200 is 0.47 per cent lower at 7,792.60. The drop was led by weakness in the materials sector due to a decline in iron ore prices, despite US stocks closing higher. Federal Reserve Chairman Jerome Powell's testimony suggesting a potential rate adjustment in September influenced market sentiment. Meanwhile, local attention shifted to the Reserve Bank of New Zealand's upcoming policy decision, with expectations centered on inflation concerns amid economic softness.
The SPI futures are pointing to a fall of 39 points.
Best and worst performers
The best-performing sector is Communication Services, up 0.77 per cent. The worst-performing sector is Materials, down 1.11 per cent.
The best-performing large cap is Insurance Australia Group (ASX:IAG), trading 1.65 per cent higher at $7.075. It is followed by shares in JB Hi-Fi (ASX:JBH) and Telstra Group (ASX:TLS).
The worst-performing large cap is Alumina (ASX:AWC), trading 3.13 per cent lower at $1.705. It is followed by shares in Mineral Resources (ASX:MIN) and South32 (ASX:S32).
Commodities and the dollar
Gold is trading at US$2374.20 an ounce.
Iron ore is 0.9 per cent higher at US$109.60 a tonne.
Iron ore futures are pointing to a 0.6 per cent fall.
One Australian dollar is buying 67.34 US cents.
