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Highlights:
Australian share market drops sharply, influenced by Wall Street's volatility.
Banking and consumer discretionary sectors face significant declines.
Key stocks see varied performance, with some surprising gains.
The Australian stock market ended the week on a challenging note, reflecting Wall Street's turbulence. A combination of an interest rate cut by the US Federal Reserve and signals for fewer rate reductions in 2025 triggered sharp market reactions. Wall Street's initial dip, followed by a partial recovery, heavily influenced Australian trading, leading to a steep decline in the S&P/ASX 200 index by the end of the week.
On Friday, the Australian market fell by 1.2% to reach its lowest point since September. Banking and consumer discretionary sectors were hit the hardest, contributing significantly to a weekly loss nearing 3%.
Major Banks Experience Sharp Declines
Among the major banks, (ASX:CBA) saw a notable 3.1% decline, reflecting broader sector weaknesses. Other leading financial players such as (ASX:ANZ) and (ASX:NAB) dropped over 2%, while (ASX:WBC) faced a smaller dip of 1.2%. This performance highlighted the sensitivity of Australian banks to Wall Street trends and broader market sentiment.
Gold Miners and Resources
The rising US dollar exerted pressure on gold prices, impacting miners across the board. (ASX:BGL) faced a significant 5.6% drop, reflecting the challenges in the gold mining sector. However, not all miners followed the same trajectory; (ASX:DEG) managed a 1.4% increase after reporting promising developments at its Hemi Gold project.
Other Significant Moves
(ASX:HMC) showed resilience with a 3.2% recovery after earlier losses tied to the DigiCo (ASX:DGT) float. Despite the rebound, (ASX:HMC) shares remain below their two-month peak. Meanwhile, biotech firm (ASX:MSB) experienced a 21.5% drop after initial gains earlier in the week, reflecting volatility in the biotech sector despite regulatory approvals for new therapies.
In the retail and energy sectors, (ASX:WES) shares fell 3.7% following the announcement of its Coregas business sale. Energy giant (ASX:WDS) edged up 1.3% after selling its stake in a major LNG venture.
ASX Settlement Delays and Thin Trading Week Ahead
Adding to the market's challenges, the ASX faced settlement delays due to technical issues with its CHESS system. These disruptions occurred as traders prepare for a short trading week with holidays looming. Upcoming economic indicators, including Australian inflation data, Chinese PMI figures, and US jobs numbers, will remain in focus amidst the anticipated low trading volume.
