ASX 200 tumbles 1.0% to six-week low as banks slide

  • The ASX 200 fell for a third session, closing at a six-week low.
  • 1.0% was the index's decline, or 92 points, to 8,804.
  • All four major banks forecast another rate hike before year-end, with NAB tipping September.

The ASX 200 fell 92 points, or 1.0%, to 8,804, its lowest level in six weeks, extending losses into a third session. Sentiment weakened despite a rebound in U.S. futures after Wall Street posted its third consecutive decline on Wednesday, as escalating U.S.–Iran tensions pushed Brent crude above USD100 a barrel and intensified inflation concerns. RBA (Australia's central bank) Deputy Gov. Andrew Hauser said policymakers will consider further tightening at the September meeting, while Assistant Governor Sarah Hunter said tolerance for stronger price pressures was limited. The hawkish comments led all four major banks to forecast another rate hike before year-end, with NAB tipping September and the other banks November. Healthcare, non-energy minerals, technology and financial stocks led the decline. The major banks fell between 0.9% and 1.8%, while BHP dropped 2.4% and Rio Tinto lost 3.1%. PLS fell 3.8%, Nextdc declined 3.3% and Lynas slid 2.9%. Cochlear rose 1.6% and Suncorp gained 1.3%, providing limited support.

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