Australian shares and US futures slid after the US Federal Reserve warned the risk of higher unemployment and inflation had risen in the face of global trade tariffs.

The S&P/ASX 200 edged down 0.2 per cent, or by 11.7 points to 8166.6 points in the first 30 minutes of trade, with five of the main index’s sectors in the red. Investors are focused on the US central bank’s interest rate decision and the final day of the Macquarie conference in Australia.

The All Ordinaries dipped 0.1 per cent.

The greenback advanced and US futures fell after Fed Chairman Jerome Powell kept interest rates on hold, reiterating policymakers saw no reason to rush policy changes. Powell warned “uncertainty about the economic outlook has increased further”.

The Fed’s cautious messaging drove gains for typically defensive stocks on the ASX 200 with utilities, consumer staples and communications stocks all advancing. Supermarket giant Coles rose 1.1 per cent and power company AGL Energy lifted 1.3 per cent.

But losses from the major banks offset those gains as Westpac dropped 1.3 per cent, while ANZ fell 1.9 per cent after reporting a flat first-half net profit.

Miners helped compound the bourse’s losses as iron ore slipped below $US98 a tonne. Sentiment faltered after Trump he was not open to lowering a 145 per cent tariff on China to kickstart trade negotiations this week. Iron ore giant BHP dropped 0.8 per cent.

Stocks on the move

In corporate news, Transurban rose 1.3 per cent after announcing a plan to cull around 300 staff following an internal review.

Orica leapt 8.2 per cent after reporting a statutory net loss of $89 million, owing to a $308.3 million impairment and restructuring hit from its Latin America operations.

Light & Wonder sank 12 per cent after telling investors it anticipates near-term cost pressures stemming from White House trade policy, despite reaffirming its full-year earnings guidance.

Generation Development rose 3.5 per cent after hauling in BlackRock to co-design and distribute retirement products – an arrangement that will see the world’s largest asset manager acquire a minority stake.

Mexican fast food chain Guzman y Gomez fell 1.5 per cent despite forecasting it would exceed full-year net profit guidance, as it targets 31 restaurant openings and higher margins.