The S&P/ASX 200 fell 60 points, or 0.7%, to close at 8,456 on Monday, its third consecutive decline, as losses spread across the board, led by logistics, producer manufacturing, financials, and healthcare stocks. Market sentiment remained fragile amid growing concern that Australia’s economic outlook has deteriorated materially following renewed conflict in the Middle East, with higher energy prices expected to stoke inflation, slow growth, and push unemployment higher.
Additional pressure came from ongoing domestic disruptions: LNG production remained offline and thousands of households in northwest Australia were still without power more than a week after severe storms, Reuters reported.
In the U.S., interest rate expectations shifted sharply, with markets now pricing in around 12 bps of additional Federal Reserve tightening this year, compared with expectations of roughly 50 bps of rate cuts just a month ago. Australia’s four major banks fell between 1.7% and 3.8%.
Among other notable decliners, Wisetech Global dropped 4.9%, Pro Medicus lost 2.7%, and Qantas slipped 1.9%. Traders are now focused on key upcoming data releases, including the RBA meeting minutes, U.S. nonfarm payrolls, and global PMI figures, all due later this week.
