Australia Market declines as Ukraine, inflation concerns

11 Mar 2022 , 04:15 PM

The Australian share market finished session lower on Friday, 11 March 2022, on tracking a selloff on Wall Street overnight fuelled by fears of a protracted conflict in Ukraine and after more data confirming the blistering pace of US inflation. Meanwhile, sentiments also dampened after the Reserve Bank of Australia Governor Philip Lowe cautioned about rate hikes in response to inflationary risks due to the recent surge in commodity prices.

At closing bell, the benchmark S&P/ASX200 declined 67.23 points, or 0.94%, to 7,063.60. The broader All Ordinaries index dropped 71.54 points, or 0.97%, to 7,339.33.

The top performing stocks in this index were ALLKEM and CHAMPION IRON, up 5% and 4.6% respectively. The bottom performing stocks in this index were ZIP CO and MESOBLAST, down 7.62% and 6.91% respectively.

Sydney stocks declined from the outset owing to a surge in the US consumer price index to the highest rate since January 1982, cementing expectations that the Federal Reserve would raise key interest rates at its meeting next week to prevent the economy from overheating.

U.S. Treasury Secretary Janet Yellen warned Thursday that America is set for another year of very uncomfortably high inflation amid the Russia-Ukraine war.

With US inflation hitting a 40-year high, Reserve Bank of Australia Governor Philip Lowe told borrowers it would be prudent to prepare for a rise in interest rates this year.

Meanwhile, sentiments deteriorated amid fears of a protracted conflict in Ukraine after the first face-to-face cease-fire talks between Ukrainian Foreign Minister Dmytro Kuleba and his Russian counterpart Sergey Lavrov in Turkey ended without progress.

CURRENCY NEWS: The Australian dollar was at $0.7347 after touching an earlier high of $0.7367.

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