Australian shares edged lower in a choppy session on Monday, as hawkish tones from major central banks continued to mount fears of the global economy slipping into recession.
The S&P/ASX 200 index fell 0.1% to 7,141.4 by 2331 GMT, after closing 0.9% lower on Friday.
Moves were in tandem with a global sell-off after central banks in the United States, euro zone, Britain and Switzerland last week slowed the pace of their aggressive interest rate hikes, however, signalled that the battle to tame inflation is far from over.
Financials led the losses, dropping 0.7%, with the so called ‘Big Four’ banks slipping between 0.1% and 0.8%.
Australian shares head for weekly loss on global recession fears
Tech Stocks lost 0.4%, following a sharp drop in tech-heavy Nasdaq index on Friday.
Gold stocks added 1.5% and were the top gainers on the index tracking a rise in bullion prices.
Australia’s largest gold miner Newcrest Mining jumped 0.8%, after it announced that its Chief Executive Officer Sandeep Biswas will retire from his role.
Miners rose 0.5%, as iron ore prices soared on optimism over China’s economic recovery prospects in 2023, with traders largely brushing aside a wave of local COVID-19 infections.
Sector majors BHP and Rio Tinto rose 0.5% and 0.6%, respectively.
Energy stocks gained 0.3%, with oil and gas majors Woodside Energy and Santos adding 0.9% and 0.07%, respectively. New Zealand’s benchmark S&P/NZX 50 index fell 0.2% to 11576.16.
Consumer confidence in the country fell sharply in the fourth quarter to the lowest level since the figures were first compiled in 1988, a survey showed on Monday.
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