Australia Market tumbles amid escalating Middle East tensions

Australia stock market finished lower for sixth straight session on Friday, 19 April 2024, as risk aversion selloff continued on concerns over worsening geopolitical conditions in the Middle East after reports of Israel striking Iran with missiles.

Israeli Prime Minister Benjamin Netanyahu had vowed retaliation earlier this week following a volley of attacks from Iran on the weekend.

Also, selloff in the market fueled by US labour reports released overnight reaffirming bets interest rates would remain higher for longer. US Federal Reserve chairman Jerome Powell backed away from providing guidance on when rates may be cut, saying instead that monetary policy needs to be restrictive for longer.

At closing bell, the benchmark S&P/ASX200 index declined by 74.83 points, or 0.98%, to 7,567.28. The broader All Ordinaries index dropped 81.51 points, or 1.03%, to 7,817.36.

All 11 sectors ended lower along with the S&P/ASX 200 Index. Information technology was the bottom performing sector, falling 1.55%, followed by A-REIT (down 1.45%), financial (down 1.13%), material (down 1.09%), and industrials (down 1.04%) sectors.

The top performing stocks in S&P/ASX200 index were GENESIS MINERAL and SANTOS, up 2.74% and 1.82% respectively. The bottom performing stocks in S&P/ASX200 index were POLYNOVO and KAROON ENERGY, down 5.58% and 5.41% respectively.

Shares of interest rate sensitive sectors such as information technology and real estate investment trusts took a hit after a US labour report overnight showed the jobless figures remained steady, intensifying market fears that US interest rates would likely remain higher for longer.

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