ASX 200 depreciates to near 7710 after snapping its winning streak, awaits Fed decision

• ASX 200 loses ground ahead of Fed policy decision.
• RBA’s Bullock underscored that the battle against inflation is not yet won.
• Chinese Foreign delegation stressed that China-Australia relations are on the right track.

The ASX 200 Index snaps its three-day winning streak, edging down to near 7710 on Wednesday. The Reserve Bank of Australia (RBA) has opted to keep interest rates unchanged at a 12-year high of 4.35%, maintaining its stance for the third consecutive meeting.

Reserve Bank of Australia issued a cautiously worded statement that refrained from providing struggling buyers with hope for an imminent rate cut. RBA Governor Michele Bullock emphasized that "the war is not yet won" against inflation. In her monetary statement, she acknowledged that inflation remained high but did not disclose any specifics regarding the timing or possibility of rate cuts, merely stating that the bank was not "ruling anything in or out."

Australian equity market followed commodity-linked stocks in early hours, driving movements, with notable gains from Fortescue Metals, up by 1.90%, and Woodside Energy, up by 1.16% at the time of reporting. Core Lithium, Telix Pharmaceuticals, and Paladin Energy lead the top gainers in the ASX 200 Index, while Amcor, Perseus Mining, and South32 are among the top losers.

Mineral Resources, a leading diversified resources company, has entered into a farm-in agreement with Lord Resources for the Horse Rocks lithium project. Earlier this week, the company also finalized a binding head of agreement with Poseidon Nickel to acquire the Lake Johnston nickel concentrator plant.

According to a recent report commissioned by the Chamber of Minerals and Energy of WA (CME), the Western Australian resources sector saw a significant increase in spending by 32% last year, reaching a record $132 billion. Data from the CME's annual economic contribution factsheets reveal that the direct economic contribution in the state also experienced a notable rise, exceeding $77 billion, equivalent to almost $27,000 per Western Australian.

During the meeting between Chinese Foreign Minister Wang Yi and Australia's Foreign Affairs Minister Penny Wong, the Chinese side emphasized the highly complementary nature of the economies of China and Australia, noting their significant potential. Stressing that China-Australia relations are on the right track, it was emphasized that there should be no hesitation, deviation, or reversal in the progress made.