Australian shares slide for a fourth day as miners fall amid Middle East tensions
The S&P/ASX 200 fell 1.1% on Friday, marking its worst week in six months, driven by a drop in major mining stocks and rising inflation concerns linked to the Middle East conflict.
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How This Affects the Exchange
Sector Effect
Neutral · Watch
Mining and energy moves abroad present mixed signals for Pakistan's Oil & Gas and Technology sectors; watch for indirect effects.
Sectors & Direction
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Desk call: Watch · Neutral effect
- Oil & GasNeutral effect
- TechnologyNeutral effect
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Mentions in This Briefing
Sectors: Oil & Gas, Technology — Neutral · Watch. Mining and energy moves abroad present mixed signals for Pakistan's Oil & Gas and Technology sectors; watch for indirect effects.
Full Story
Open on Business Recorder## Market Overview
The Australian S&P/ASX 200 index declined for the fourth consecutive session on Friday, slipping 1.1% to 8,727 points by 0010 GMT. The broader market is set to lose about 3.2% this week, its steepest decline since early March, as investors react to heightened Middle East tensions and their impact on global energy supplies.
## Drivers of Weakness
The downturn was led by heavyweight mining companies. On the Sydney exchange, the miners sub‑index fell 3.9% to a one‑month low, with BHP and Rio Tinto dropping 4.4% and 3.1% respectively. The slide was compounded by falling copper prices after reports that the White House had not yet decided on refined copper tariffs, raising concerns about higher manufacturing costs.
## Inflation and Rate Outlook
Global government borrowing costs are near multi‑decade highs, and central bankers have adopted a more hawkish tone. In Australia, 3‑year bond yields jumped to 5.038%, a level not seen since May 2011, fueling expectations of an imminent rate hike to curb sticky inflation driven by rising fuel bills.
## Sector Performance
- Technology stocks mirrored Wall Street losses, falling 1.7% to their lowest level since late July. Major names such as WiseTech Global and Xero lost 2.7% and 1.2% respectively. - Energy stocks were an outlier, gaining 0.6% and on track for their strongest week since mid‑August, with Woodside Energy and Santos each adding 1.1%.
## Regional Context
New Zealand’s S&P/NZX 50 index edged down 0.2% to 13,687.80, while the broader Pacific market awaits Australia’s quarterly economic growth figures due next week.
## Outlook for Pakistan Investors
The weakness in global mining equities and the broader risk‑off sentiment could temper demand for commodities, which may indirectly affect Pakistan’s mining‑related exporters. Conversely, the modest rise in energy stocks suggests continued interest in oil and gas, a sector relevant to Pakistan’s own energy companies. Investors should monitor further developments in Middle East geopolitics and Australian monetary policy for any spill‑over effects on the PSX.