Australian shares head for worst week in six months, miners lose lustre

Australian shares declined for the fourth straight session on Friday in broad-based weakness led by heavyweight miners, while traders focused on inflationary concerns and future rate hikes brought on by the Middle East war-led energy shock. The S&P/ASX 200 index slipped 1. 1% to 8, 727 by 0010 GMT. The benchmark settled 1% lower in its weakest trade since early June on Thursday. The index is on track to shed 3. 2% this week, its worst move since early March, as markets contend with heightened tensions in the Middle East and their implications for energy supply with crude prices trading above the $100 level. Government borrowing costs around the globe are at or near multi-decade peaks amid heightened worries of inflation and elevated interest rates. A recent raft of hawkish commentary from central bankers has further cemented the prospect of an imminent rate hike in Australia to tame sticky inflation due to rising fuel bills. Yields on the 3-year bond surged to 5. 038% on Friday, a level last seen in May 2011. On the Sydney bourse, miners dropped 3. 9% to a one-month low. BHP and Rio Tinto declined 4. 4% and 3. 1%, respectively. The sub-index was pressured by copper prices retreating from record highs after Reuters reported that the White House has yet to decide on refined copper tariffs as officials assess concerns that higher prices could raise manufacturing costs. Technology stocks paralleled losses in Wall Street to fall 1. 7%, their lowest since late July. Sector majors WiseTech Global and Xero lost 2. 7% and 1. 2%, respectively. Energy stocks were an outlier, up 0. 6% and headed for their strongest week since mid-August. Woodside Energy and Santos added 1. 1% each. New Zealand’s S&P/NZX 50 index ticked down 0. 2% to 13, 687. 80. The benchmark was on course to fall 2. 4% for the week, its weakest performance since early March. Investors will be looking out for the island nation’s quarterly economic growth figures slated for next week.

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