Australia: Shares skid 2% in broad-based selling on slowdown worries

AUSTRALIAN shares fell 2 per cent on Friday to hit a seven-week trough, as investors dumped equities across the board on concerns that aggressive central bank policies around the globe to contain broadening inflation pressures could hurt economic growth. The S&P/ASX 200 index fell 2 per cent to 7,215.5 by 0018 GMT, hitting its lowest since March 17. The benchmark was set for a third straight weekly drop and also its worst week since October 2020. Global investor sentiment has been hit by worries about fast-paced interest rate hikes at a time of China’s Covid-19 lockdowns and the war in Ukraine, to slow surging inflation. Technology stocks tumbled 3.8 per cent in Australia, leading the losses after the technology-heavy Nasdaq dropped 5 per cent overnight. ASX-listed shares of Block Inc dropped 1.8 per cent. Financials skidded 1.8 per cent, with the “big four” banks down between 0.6 per cent and 1.5 per cent. Macquarie Group declined 5.6 per cent after it warned of significantly lower income from its commodities trading arm and forecast transaction activity at its capital business to ease from record levels in the near term. Gold stocks fell nearly 3 per cent after bullion prices retreated overnight. Newcrest Mining, the country’s largest gold miner, was down 2.1 per cent. Energy stocks lost 1.6 per cent, even as oil prices firmed on supply concerns after the European Union (EU) laid out plans for new sanctions against Russia including an embargo on crude. Heavyweights Woodside Petroleum and Santos slid about 1 per cent each. Miners dropped 2.7 per cent, with iron ore behemoths BHP, Rio Tinto and Fortescue shedding more than 2 per cent each. New Zealand’s benchmark S&P/NZX 50 index was down 1.3 per cent at 11,597.37. REUTERS