Australian shares fell 72 points, or 0.8%, to 8,747 on Friday morning, marking a fourth consecutive decline and the lowest level in two months. Losses were broad-based, led by healthcare, technology, non-energy minerals, and logistics, as an overnight sell-off on Wall Street weighed on sentiment.
Rising U.S. Treasury yields and Brent crude trading above USD 107 heightened fears over inflation and further interest rate hikes, while President Trump cautioned that energy prices may remain elevated until after November’s election. Domestically, concerns intensified that persistently high rates and sticky inflation could push the economy toward a slowdown.
RBA Deputy Governor Hauser signaled that additional policy tightening will be on the table at the September meeting, a view reinforced by Assistant Governor Sarah Hunter, who warned that the central bank has little tolerance for renewed upward pressure on prices.
Heavyweight miners were a major drag, with BHP down 4.1%, Evolution Mining off 3.8%, and Northern Star Resources losing 3.6%. The big four banks, however, bucked the broader market weakness, rising between 0.2% and 1.4%. For the week, the index is on track for a second straight weekly loss, down nearly 3% to date.
