Australia: Shares slip as slowdown fears return, energy top loser

AUSTRALIAN shares skidded on Thursday, on course for their worst month since March 2020, as recent comments from US Federal Reserve officials reaffirmed fears of a sharp economic slowdown amid attempts to contain soaring inflation.

The S&P/ASX 200 index fell 0.3 per cent to 6,677.8 by 0050 GMT, shedding 7.6 per cent so far in June in what would be its third straight monthly decline. 

Fed Chairman Jerome Powell said at a European Central Bank conference there is a risk the US central bank’s interest rate hikes will slow the economy too much, but the bigger risk is persistent inflation. 

Energy stocks were the top losers on the Australian benchmark index, shedding as much as 1.7 per cent on lower oil prices. Sector leaders Woodside Energy and Santos gave up 2.1 per cent and 0.2 per cent, respectively. 

The sub-index, however, was on track for its best half-yearly performance since June 2005, rising more than 30 per cent since the start of this year. 

Meanwhile, shares of AGL Energy jumped as much as 1.7 per cent after the country’s top power producer said a unit of Canadian investment manager Brookfield Asset Management acquired about 2.6 per cent of its stake on June 24. 

Financials also weighed on the benchmark, declining as much as 1 per cent in what could be their worst session since June 17. The country’s so-called “big four” banks were down between 0.6 per cent and 0.9 per cent. 

The sub-index has slumped more than 10 per cent since the start of this year. 

Exports-centric miners slumped as much as 1.3 per cent on Thursday as iron ore prices retreated after a two-day rally. Sector leaders BHP Group, Rio Tinto and Fortescue slipped between 1 per cent and 2 per cent. 

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Australia: Shares close nearly 1% lower on renewed recession fears

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index was largely unchanged. REUTERS