Australian market slides toward worst month since US-Iran war amid sell-off
The ASX200 slipped 0.8% to 8,660.9 points, putting the Australian market on pace for its poorest month since the US-Iran war, as material stocks fell and Brent crude rose.
On Thursday the S&P/ASX 200 fell 0.8% to 8,660.9 points, matching Wall Street and setting the stage for the worst month since the US-Iran war began. The slide was driven by losses in materials, financials and industrials, while Brent crude rose 2% and boosted energy-related stocks. Consumer staples, energy and utilities posted modest gains, but Lovisa’s shares tumbled 9.1% after its chief financial officer quit, and Israeli chip maker Weebit Nano sank 11.5% to a year-low after denying bankruptcy risk.
VanEck senior portfolio manager Cameron McCormack highlighted that forward earnings growth of 8% fell short of the 17% global average and warned of further downside from the Reserve Bank of Australia’s tightening cycle. Weld Australia’s CEO Geoff Crittenden blasted the central bank for raising capital costs while urging productivity investment. Meanwhile, Alvo Minerals jumped 210% on positive rare-earth drilling data from Brazil, and UBS noted that Small Ordinaries remain undervalued relative to large caps.
Why it matters
The decline signals heightened pressure on Australian equities from rising rates and commodity price shifts, affecting investors and the broader economy.
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