Australian Sharemarket Closes Week at Three-Month Low Amid Global Sell-Off

The Australian sharemarket closed the week at a three-month low, with the ASX slipping 1.2 per cent on Friday afternoon to 8067.70, its lowest level since September. The index was down 2.8 per cent for the week, in line with a global sell-off in equities that accelerated late in the week.

Investors were spooked after the US Federal Reserve signaled a more cautious approach to rate cuts, leading to a broad sell-off in the Australian market. Only three sectors – energy, utilities, and technology – managed to stay in the green, while consumer discretionary stocks and financials led losses.

Australia’s big banks, including Commonwealth Bank, saw losses, while Wesfarmers fell 5 per cent following the sale of its subsidiary Coregas. E-commerce platform Siteminder also sold off, tracking losses on the Nasdaq.

The Australian dollar retreated to $US62.23, marking its worst weekly decline in a year. This, coupled with strength in the US currency, also impacted Bitcoin and gold prices, hurting Australia’s gold miners.

In terms of individual stocks, Mesoblast saw a wave of profit-taking after US regulators approved its cell therapy, Integral Diagnostics rose after completing a merger with Capitol Health, Ventia announced a deal with Telstra, and De Grey Mining reacted positively to news about its Hemi Gold project.

Overall, the Australian sharemarket closed the week on a low note, with investors cautious about the global economic outlook and the impact of central bank policies on equities.