Australian shares fall 0.9% to more than two-month low as miners slide

  • S&P/ASX 200 fell 0.9% as miners led losses across Australian shares.
  • 2.1% weekly decline was the index's steepest since mid-March.
  • Oil prices stayed above $100 while Australian bond yields exceeded 5%.

The S&P/ASX 200 fell 0.9% to 8,741.20 on Friday, its lowest close since July 2, as miners led a broad retreat amid weaker commodity prices and heightened inflation concerns. The index lost 2.1% over the week, its steepest weekly decline since mid-March. Heavyweight miners dropped 3.7%, with BHP down 4.1% and Rio Tinto off 3.5%, while lithium producers Liontown and PLS fell 8.6% and 7.4%, respectively. Oil prices eased on Friday but remained above $100 a barrel and were set for a weekly gain, raising concerns that prolonged supply disruptions and the Middle East war could keep inflation elevated. Hawkish signals from Reserve Bank of Australia governors helped lift market pricing for 32 basis points of rate hikes by November and 39 basis points by December. Short- and long-term Australian government bond yields rose above 5%, reaching their highest levels since mid-2011. Financial stocks gained 1.1%, limiting the market's losses. New Zealand's S&P/NZX 50 fell 1% to 13,580.33 ahead of the country's June-quarter GDP data next week.

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