The Australian share market eased on Friday after a strong rally on Thursday. The S&P/ASX 200 Index traded lower following overnight declines on Wall Street and fresh concerns about global banking and trade.
Market Opens Lower After Record Sessions
ASX futures pointed to a weaker start to the trading day. According to the latest SPI data, the benchmark index fell 0.4% or 35 points in early trade. The move followed a strong close on Thursday when the ASX 200 rose 0.85% to finish at 9,068.4 points, marking a new record close.
The overnight lead from the United States dampened sentiment locally. The Dow Jones Industrial Average lost 301 points, or 0.7%, to finish at 45,952. The S&P 500 slipped 0.6% to 6,629, while the Nasdaq Composite ended 0.5% lower at 22,562.
ASX 200 at closing
U.S. Concerns Hit Global Sentiment
Global risk appetite weakened after reports of rising loan losses in smaller U.S. banks. Zions Bancorp plunged 13% after disclosing a $50 million loss linked to troubled borrowers. Western Alliance dropped 11% after alleging borrower fraud in its loan book.
Jefferies declined another 10% as it faced exposure to bankrupt auto companies. Investors expressed concern that private credit markets faced mounting risks. The Cboe Volatility Index rose above 25, the highest since May, underscoring heightened market anxiety.
The sell-off also triggered safe-haven demand. The U.S. 10-year Treasury yield fell below 4%, and the U.S. dollar index slipped by nearly half a percent.
Impact of Trade and U.S. Shutdown
Trade tensions escalated after President Donald Trump renewed tariff threats. He warned of potential 100% tariffs on Chinese imports in retaliation for rare earth export controls. The comments reignited uncertainty after a brief diplomatic pause.
The ongoing U.S. government shutdown entered its third week. The closure halted release of several economic reports, leaving traders without key indicators and adding to global uncertainty.
ASX Energy Stocks Under Pressure
Energy producers faced renewed pressure as crude oil prices fell. Brent crude traded at US$61.20 a barrel, down 1.15%, while WTI slipped to US$57.60. The decline weighed on Santos and Karoon Energy. Analysts noted that cooling global growth expectations continued to limit investor interest in the sector.
Gold Sector Maintains Momentum
Gold miners extended gains as investors shifted to safe assets. The gold futures price rose 2.55% overnight to US$4,309 per ounce. The move lifted shares in Evolution Mining and Northern Star Resources. Both stocks recorded steady gains as traders priced in higher demand for bullion amid global market turbulence.
Bell Potter maintained a buy rating on Evolution Mining. The firm noted that the company offered strong exposure to gold and copper through long-life assets in leading jurisdictions. It lifted its price target to $12.35 per share from $10.55, citing management discipline and growth in free cash flows.
Financial and Real Estate Stocks Still Lead
Financial stocks remained resilient after Thursday’s surge. The earlier rally followed stronger expectations of a Reserve Bank rate cut after unemployment data showed the highest rate in four years. Market forecasts now place the probability of a November rate reduction at 72%, up from 40% before the data release.
Macquarie Group rose 5.1% this week to its highest level since August following a $40 billion AI data centre partnership with global firms BlackRock, Microsoft, and NVIDIA. ANZ Group continued its upward momentum, reaching its strongest level in more than a decade.
Real estate companies also performed well. Goodman Group gained 5%, and Mirvac rose 3.5% as lower-rate forecasts encouraged investor confidence in property valuations.
Broker Downgrades and Stock Movements
Analysts at Bell Potter downgraded Imdex shares to hold from buy with a price target of $3.90. The broker cited fair valuation levels, noting that the company traded at 32.7 times FY26 earnings. It maintained optimism on exploration activity growth but considered the valuation premium over peers extensive.
“While we remain bullish on near-term exploration activity growth, we see IMD’s 32.7x FY26 PE and 28.6x FY27 PE as fair value,” the firm said in its report.
AMP remained among the week’s top performers, rising nearly 18% after releasing its third-quarter report. The company reported a 76% increase in platform net inflows, reaching $750 million. Its total loan book climbed to $23 billion.
By contrast, Healius dropped 4.47% to $1.71 amid sector rotation and weaker demand signals. Industrials led gains at the sector level this week, rising 1.85%, followed by Financials and Real Estate, which each gained 1.65%.
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Economic Outlook and Investor Mood
Investors continued to weigh economic slowing and interest rate outlooks. The Reserve Bank of Australia confirmed that it would assess the quarterly inflation data later this month before adjusting monetary policy. The Australian dollar held near its recent low as local traders awaited clarity from economic updates scheduled next week.
Analysts observed that rate-sensitive sectors were responding positively to potential easing. Market participants expect that lower borrowing costs will stimulate home lending and consumption over the December quarter.
Market Behaviour Into Close
By mid-session, the ASX 200 hovered around 9,030 points. Gains in gold and real estate stocks cushioned the broader retreat led by energy shares. Turnover remained steady, reflecting a cautious tone as global equity volatility increased.
Investors closed the week monitoring developments from the United States while focusing on upcoming inflation figures in Australia. The S&P/ASX 200 remained up 1.6% for the week despite the day’s slight fall, maintaining strong year-to-date performance above 9,000 points.
