ASX 200 slides to 50-day low amid Middle East unrest and rising rates
Australia's benchmark ASX 200 fell to its lowest close since June as higher oil prices, climbing bond yields and inflation worries pressured investors.
On Friday the ASX 200 slipped to a 50-day low, closing at 8,665.00, down 0.43% amid a mix of global and domestic pressures. Higher oil prices stemming from Middle East tensions fed inflation fears, while bond yields rose in both Australia and the United States, making borrowing more costly for businesses and homeowners. The Australian dollar rose modestly to 70.2 US cents, and the four major banks posted gains, buoyed by expectations that higher rates could lift margins.
Wealth-platform stocks fell sharply after Netwealth disclosed a class-action lawsuit involving its super-fund offerings. Meanwhile, lithium and technology stocks lagged, though a few smaller firms such as Electro Optic Systems and Block managed modest advances. Market participants now await the Reserve Bank’s policy decision, which is widely expected to include a 0.25% rate hike.
Why it matters
The decline signals how global tensions and rising borrowing costs are influencing Australian equity markets and could affect investors and the broader economy.
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