ASX posts worst week since October 2020; traders sell tech, real estate
ASX record worst week since October 2020. Tech, real estate and communication stocks hit hard, Bendigo Bank lifts rates, Macquarie record profit and RBA ups wages outlook.
Welcome to the Trading Day blog for Friday, May 6. The Australian share market slid to its worst week in 18 months following widespread selling on Friday.
The benchmark S&P/ASX 200 index closed 2.2 per cent or 159.05 points lower to 7205.60 with all sectors in the red.
US stocks sank overnight, reversing the previous session’s strong rally as stagflation fears took hold of the market.
The Bank of England raised interest rates to 1 per cent overnight and warned that the country must brace for double-digit inflation.
That sent the Dow Jones Industrial Average plunging 3.1 per cent, or 1,063 points, the S&P 500 off 3.6 per cent and the tech-heavy Nasdaq tumbling 5 per cent.
Among commodities, US Nymex crude oil was trading 0.4 per cent higher to $US108.20 a barrel while iron ore added 1.7 per cent to $US145.20 a tonne.
ASX to rise amid RBA watch; Magnificent Seven lead US gains
RBA's Christopher Kent to discuss findings of a review into its emergency bank funding facility. NZ's central bank tipped to cut rate by 50 basis points. Oil price fall to weigh on energy stocks after China underwhelms miners. Tech gains power Wall Street.
ASX 200 falls on China update; BHP leads mining reversal
Iron ore, copper futures, AUD down after China's underwhelming economic update. RBA's 'step down' in hawkishness evident in September minutes, but deputy governor Andrew Hauser says inflation job's not done yet.