The S&P/ASX 200 fell 1.6% to around 8,500 in early Thursday trading, snapping a two-session winning streak as a renewed spike in oil prices—driven by attacks on energy facilities in the Middle East—rekindled inflation fears. The decline also mirrored a sharp overnight selloff on Wall Street, where stronger‑than‑expected US PPI data and the Federal Reserve’s higher inflation projections dampened hopes for imminent interest rate cuts.
In Australia, sentiment turned cautious ahead of the labour market data due later in the day, which could offer further guidance on the policy outlook after the central bank delivered back‑to‑back rate hikes in a split decision.
Losses were broad-based, led by resource and technology stocks. Among major names, miners BHP and Rio Tinto slid 2% to 3%, gold producer Northern Star tumbled 8%, and software firm WiseTech Global dropped 4%. In contrast, energy stocks advanced strongly, buoyed by the jump in oil prices.
