The S&P/ASX 200 experienced a decline of 1.4% during early Friday trading, dipping below the 8,440 mark to reach its lowest point in over five months, with widespread losses across various sectors. This index is on track for a 2.2% decrease for the week, the most significant drop since late March, indicating a fourth consecutive week of downturn largely due to global market overvaluation concerns and diminishing optimism for additional domestic policy easing.
The mining sector bore the brunt of the decline, plummeting 3.1% as iron ore and copper prices fell in response to decreased demand from China, the largest consumer of metals. Consequently, major players such as BHP, Rio Tinto, and Fortescue saw their shares drop between 2.5% and 3.3%. The financial sector also saw a reduction of 1.3%, with the “Big Four” banks all experiencing losses. This sector is poised for a second week of losses as investors grow wary of margin pressures impacting earnings.
Additionally, gold miners retreated alongside a downturn in bullion prices, and technology stocks witnessed declines amid fresh apprehensions regarding inflated valuations globally in the tech industry.
