The ASX boards in Sydney

ASX tumbles after biggest weekly interest rate loss since 2020

Australian shares tumbled at the open as investors fear aggressive monetary policy tightening could push the global economy into recession.

The ASX 200 was steady at 6,474 at 10:24 a.m. AEST.

Meanwhile, the Australian dollar was up at 69.49 US cents.

All 11 sectors were down over the past week. Although little changed, the consumer staples sector was the best performer early in the trade. It was down 3% in the past five days.

Pointsbet (+11.2pc), Harvey Norman (+4.8pc) and Home Consortium (+3.6pc) were the best performers.

Meanwhile, Bega Cheese (-6.9pc), De Gray Mining (-6.1pc) and Beach Energy (-5.9pc) were the worst performers.

Brent crude oil was up, trading at US$113.77 a barrel, as of 10:31 a.m. AEST.

Biggest weekly loss since 2020

On Friday, global stocks closed their biggest weekly decline since the March 2020 pandemic meltdown as investors worried that a tightening of anti-inflation central bank monetary policy could hurt economic growth.

The biggest rate hike by the US Federal Reserve since 1994, the first such Swiss move in 15 years, a fifth UK rate hike since December and a decision by the European Central Bank to support the indebted south have in turn shaken the markets.

The Bank of Japan was the only outlier in a week that silver prices rose globally, sticking to its strategy on Friday of pinning 10-year yields near zero.

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