Australian shares retreat as oil surges, banks and miners weigh
- The S&P/ASX 200 was down 0.5% at 9,101.70
Australian shares declined for a second day, influenced by geopolitical tensions, falling banks and miners, and rising oil prices, despite being on track for a weekly gain.
- Geopolitical tensions impacting Australian share market.
- Performance of banking, mining, and technology sectors.
- Rising oil prices and renewed inflationary pressures.
- US market trends and Nvidia CEO's resignation.
Australian shares extended their decline for a second day on Friday, as most sectors traded in negative territory with banks and miners shedding the most, while investor sentiment was hampered by resurgent geopolitical tensions.
The S&P/ASX 200 was down 0.5% at 9,101.70 by 2321 GMT.
The index ended 0.1% lower on Friday, but was on pace to book a third consecutive weekly gain with a roughly 1% jump.
Earlier this week, Australian markets rallied alongside their global peers when oil prices hit multi-month lows after US President Donald Trump downplayed the likelihood of renewed strikes on Iran.
However, escalating attacks on energy infrastructure in top crude producer Saudi Arabia and shipping disruptions at the Strait of Hormuz lifted oil prices on the day.
That renewed inflationary pressures, which have rattled world economies since the start of the Iran war earlier this year.
Yields on short-term government bonds, which typically move in tandem with central bank rate expectations, advanced on Friday, with the 1-year yield up at 4.966%.
On the economic front, investors will be looking out for monthly employment figures due next week.
Australian shares tick down as miners slip, banks limit losses
Mining stocks tracked lower base metal prices to fall 0.9%, with BHP and Rio Tinto slipping 0.6% and 0.9%, respectively.
The sector was, however, poised for a 1.8% weekly rise.
Financials fell 0.6% after all “Big Four” banks traded in the red, with the sub-index on track to log its second consecutive weekly loss.
Technology stocks slipped 1.2% to mirror overnight losses in the tech-heavy Nasdaq Composite.
US markets were pressured by a drop in AI chipmaker Nvidia following CEO Jensen Huang’s resignation.
Energy stocks were among the few outliers to jump 1.1%. Shares of Woodside Energy and Santos added more than 1% each.
In New Zealand, the S&P/NZX 50 fell 0.3% to 14,210.10, retreating from a record high on Thursday. The index was, however, poised for a 1.4% weekly advance.
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