Australia: Shares post biggest weekly drop in 2 years amid broad sell-off

AUSTRALIAN shares ended the week in red to mark their biggest weekly fall in 2 years amid a global equities sell-off on weak commodity prices, with investors refraining from placing big bets ahead of US inflation data due later in the day.

The S&P/ASX 200 index ended 1.25 per cent lower at 6,932.0 on Friday (Jun 10). For the week, the benchmark lost 4.2 per cent and snapped its third weekly gain.

Global market sentiment was also downbeat as investors anxiously await US data, which is expected to show consumer prices to remain elevated.

Gold stocks lost nearly 2 per cent and led the losses in the benchmark index on weak bullion prices, with the country’s largest gold miner Newcrest Mining down 1.4 per cent.

“We are seeing the profits that we have been making in the commodities getting taken off today and there is a general sense of concern and more uncertainty in the market ... with the main focus on is inflation and response by central banks,” said Brad Smoling, managing director at Smoling Stockbroking.

Renewed Covid-19 measures in Beijing further dented market sentiment, with local miners dropping 1.08 per cent to their worst week since May 13 on tepid iron ore prices.

Mining heavyweights BHP Group and Rio Tinto skidded more than 3 per cent each.

Financials lost 1.6 per cent, marking their worst week since March 2020, with the “Big Four” banks sliding between 0.7 and 1.5 per cent.

Markets could expect more pain if the US inflation numbers come in high, Smoling added.

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Shares of Crown Resorts, Australia’s largest casino operator, rose 0.6 per cent after regulators in the state of Western Australia cleared its US$6.3 billion buyout by US private-equity giant Blackstone.

In New Zealand, the benchmark S&P/NZX 50 index closed 0.7 per cent lower at 11,136.28, and saw its worst weekly loss since May 13. REUTERS