ASX200 down 1% for week – biggest since early April
CBA down 10% since peak valuation in late June
Woodside posts 9-month closing high, energy index up 1.8%
(Updates to market close)
July 25 (Reuters) – Australian shares posted a one-week closing low on Friday, dragged down by banks and miners as investors booked profits ahead of a crucial week that includes U.S. President Donald Trump’s tariff deadline and a host of central bank meetings.
The S&P/ASX 200 index fell 0.5% to 8,666.90, its lowest close since July 17. The benchmark logged a 1% fall for the week, its biggest since early April.
Investors pulled back from stocks across Asia as caution reigned ahead of Trump’s August 1 deadline for trade deals. Focus will be on how countries, including Australia, negotiate with the United States to secure a favourable agreement.
Lingering uncertainties around the U.S. Federal Reserve’s monetary policy path, along with the Reserve Bank of Australia’s guarded stance over rate cuts, also weighed on risk appetite.
“A mix of rally fatigue in Asian markets after week-long gains and renewed doubts over the pace of Fed cuts is weighing on sentiment, prompting local investors to lock in profits,” said Hebe Chen, market analyst at Vantage Markets.
“Tariff risks and broader macro crosswinds are also resurfacing ahead of the August 1 deadline, amplifying defensive positioning into the weekend and the week ahead.”
Financials fell 0.5% on Friday, shedding 3.9% this week in their worst weekly performance since early March.
The sub-index has declined 3.5% so far this month, led by Commonwealth Bank of Australia, which has tumbled around 10% since touching a peak valuation of A$320 billion (210.27 billion) last month.
Miners declined 1.8% on the day, but added 2.5% during the week, benefiting from a rotation out of banks.
Energy stocks advanced 1.8% on Friday, rising 3.9% for the week in their strongest performance since mid-June. Woodside Energy surged 3.7% to its highest close since early October.
New Zealand’s benchmark S&P/NZX 50 index closed 0.4% higher at 12,853.46, but fell 0.2% for the week. ($1 = 1.5218 Australian dollars) (Reporting by Nikita Maria Jino in Bengaluru; Editing by Subhranshu Sahu)
