Australian shares struggled for momentum on Friday, as losses in financials countered gains in energy and mining stocks, while a hotter-than-expected US inflation report raised some doubts that the Federal Reserve will cut rates as early as expected.
The S&P/ASX 200 index fell 0.1% to 7,501.3 by 0038 GMT after closing 0.5% higher on Thursday.
Consumer prices in the US increased more than expected in December 2023 with higher costs for shelter and healthcare, indicating that it was likely too early for the Fed to begin cutting interest rates.
In Sydney, rate-sensitive financials led the fall, shedding 0.1%.
The ‘Big Four’ banks lost between 0.1% and 0.5%. Energy stocks gained 0.5%, heading for a second consecutive weekly gain, after oil prices rose 1% overnight.
Oil prices surged on Thursday after Iran seized a tanker carrying Iraqi crude bound for Turkey.
Yemen-based Houthis launched their heaviest attack yet on commercial maritime channels in the Red Sea this week.
The US and Britain signalled that they may take further steps if the attacks continue.
Mining stocks rose 0.4%, but were set for a second consecutive weekly loss.
Australia shares led higher by Financials; US inflation in focus
Technology stocks tracked their overseas peers lower and were last down 0.1%.
ASX-listed shares of Block skidded 1.5%, while Xero was down 0.3%.
Healthcare stocks slipped 0.4%, with CSL and Ramsay Health Care shedding 0.7% and 0.1%, respectively. Gold stocks advanced 0.4%, but were poised for a second straight weekly loss.
Among individual stocks, Australia’s Centuria Office REIT rose 0.8%, even after it said the book value of its portfolio as at the end of first half of fiscal 2024 fell 5.6%.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index fell 0.1% to 11,791.83.
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