SYDNEY (AFX) - Share prices are expected to trade lower following falls on the New York and London Stock Exchanges and mixed commodity prices, dealers said.
They said the market is showing signs of losing momentum after a strong run which has propelled the key indices to a series of record highs.
The S&P/ASX 200 June futures contract ended its overnight session down 23.0 points at 5,079.0, suggesting a weak start to trading.
Yesterday, the S&P/ASX 200 ended down a modest 2.3 points or 0.05 pct to close at 5,085.8, off an all time intra-day high of 5,104.5 but below Monday's record closing high of 5,088.1.
The All Ordinaries Index eased just 0.3 points at 5,044.8, only marginally below a record close of 5,045.1 also set on Monday.
In New York, share prices closed with heavy losses Tuesday, after the Federal Reserve raised interest rates and disappointed investors by signaling that further increases may be on the way.
The Dow Jones Industrial Average closed down 95.57 points at 11,154.54, well below a pre-Fed level of around 11,269.
News Corp eased 0.57 pct while National Australia Bank ADRs rose 0.28 pct.
In London, share prices closed lower on nervousness ahead of the FOMC meeting and fading hopes of continued corporate activity, prompting some investors to take profits.
The FTSE 100 ended down 36.5 points at 5,935.7.
BHP Billiton eased 0.54 pct while Rio Tinto gained 0.04 pct.
Major currencies were mixed on Tuesday.
However, the US dollar moved higher against all currencies following the Federal Reserve policy statement. Following the FOMC announcement the euro dropped to 1.2015 usd from 1.2060 before the FOMC statement and Japanese yen fell to 117.90 usd from 117.05.
Crude oil prices surged above 65 usd a barrel on Tuesday to seven week highs following more threats of attacks in Nigeria and potential strikes in Norway.
The May Nymex contract rose 1.91 usd to 66.07 usd a barrel.
Base metal prices were mostly weaker on Tuesday because of a small technical correction.
However, copper set a new record high following more supply concerns.
Gold fell slightly on Tuesday after cautious trade before the FOMC policy announcement. The Comex April gold quote fell 0.40 usd to 567.00 usd an ounce.
(1 usd = 1.42 aud)
bruce.hextall@xfn.com
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