Australian Shares Plummet Amid Fed Jitters and Commodity Slump

Australian shares closed at their lowest level in over three months on September 15, as investors waited for the US Federal Reserve's rate decision later that week. The S&P/ASX 200 fell 0.9 per cent to close at 8,672.50 points.

The decline was driven by commodity stocks and banks, which lost 2.3 per cent and 1.1 per cent respectively. This suggests investors are focusing on potential credit quality deterioration rather than the boost from higher rates.

Emanuel Ajay Datt, managing director of Datt Group, noted that the Fed meeting has a high probability of a 25 bps hike, which would lead to growth multiples compressing and rate-sensitive stocks underperforming.