Australia: Shares rebound but set for fourth weekly drop

AUSTRALIAN shares climbed more than 1 per cent on Friday but were set for their fourth straight weekly drop as high inflation, rising interest rates and energy supply fears in Europe kept investors worried about a global economic slowdown. The S&P/ASX 200 index jumped 1.1 per cent to 7,018.50 by 0032 GMT, with all sectors except gold trading in positive territory. The benchmark had lost 3.7 per cent this week, as of Thursday’s close. The flagship MSCI global index is down about 20 per cent in the worst start to a year in recent memory, as rising inflation, the war in Ukraine and China’s Covid-19 woes have kept investors on edge. Japan’s Nikkei was up 1.74 per cent on Friday and S&P 500 E-minis futures were up 0.59 per cent. In Australia, energy stocks gained 1.9 per cent but were on track for a fourth straight weekly loss. Sector heavyweights Woodside Petroleum and Santos rose 2.5 per cent and 1.9 per cent, respectively, on Friday. Oil prices firmed in early trade but were headed for their first weekly drop in three as worries about inflation and China’s Covid-19 lockdowns outweighed concerns about dwindling fuel supply from Russia. Miners rose 1 per cent but were set for their fourth consecutive weekly drop after losing 6.1 per cent in the last four sessions. Sector heavyweights BHP Group and Rio Tinto advanced 1.3 per cent and 1.9 per cent, respectively. Technology stocks tracked the tech-heavy Nasdaq higher and were up 4 per cent. The sub-index was the top percentage gainer on the benchmark but looked set to mark its worst weekly performance in a year. Financials rose 0.6 per cent after a six-session losing streak, while gold stocks fell 0.7 per cent on weak bullion prices. New Zealand’s benchmark S&P/NZX 50 index fell 0.5 per cent to 11,116.03. REUTERS