Australian shareswere little changed on Friday as losses in financials offset gains in miners, with investors cautious after Iran rejected a U.S. proposal to end nearly four weeks of conflict that has rattled global markets.
The benchmark S&P/ASX 200 index slipped 0.1% to 8,516.30 points, but still snapped a three-week losing streak, rising about 1.2% for the week. The gains were underpinned by softer-than-expected inflation data and earlier optimism around a potential ceasefire, which helped the index recover some lost ground.
Sentiment, however, remained fragile after an Iranian official dismissed Washington’s proposal as “one-sided and unfair,” even as the United States extended a deadline to make a deal or face strikes on power infrastructure, underscoring the uncertain path of the conflict.
“If the war drags on, growth and inflation risks will compound and weigh on equities. A de-escalation could trigger a relief rally, though any recovery may be gradual as the broader impacts play out,” said Kyle Rodda, senior financial market analyst at Capital.com.
The Reserve Bank of Australia raised interest rates for a second straight meeting this month to 4.1% as rising energy costs and global uncertainty continue to weigh.
Miners were broadly flat on the day but remained under pressure from weaker commodity prices and were on track to snap an eight-month winning streak.
Gold stocks, down 1.5%, extended losses to give up more than 28% in March, heading for their worst month since June 2013, as a stronger dollar and rising bond yields pressure bullion prices.
Financials slipped 0.2%, marking a fifth straight week of declines, with three of the big four banks losing between 0.2% and 1.5%.
Energy stocks rose 0.9% as higher oil prices continued to support the sector. The sub-index is set for a seventh consecutive weekly gain, a streak last seen in April-May, 2018. Santos added 1.1%.
New Zealand’s S&P/NZX 50 index fell 0.3% to 12,935.39 points.
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