Australian share market: Red alert as gains lost since Trump's win, on track for second-worst week of 2024

The Australian share market is down sharply for a second day and on track for its second-worst weekly performance of the year.

Near noon on Friday AEDT, the benchmark S&P/ASX200 index had fallen 90.2 points, or 1.1 per cent, to a seven-week low of 8,078, while the broader All Ordinaries had dropped 85.1 points, or 1.01 per cent, 8,329.9.

For the week the ASX200 was on track for a 2.5 per cent drop, which would be its worst week since a 2.8 per cent decline for the week of April 15-19.

IG market analyst Tony Sycamore said markets had not been prepared for the Federal Reserve’s more hawkish tones in its public statements on Thursday.

He said that had been the catalyst to flush out some of the more speculative excesses that had flowed into risk assets, including stocks and Bitcoin, following the US election.

But Mr Sycamore was optimistic the carnage had merely postponed a Santa rally, not cancelled it.

At midday eight of the ASX’s 11 sectors were lower, with energy and utilities higher and tech neutral.

Consumer discretionaries shares were collectively the biggest mover, dropping 2.1 per cent as Wesfarmers fell 3.4 per cent.

The Perth-based conglomerate announced on Friday it would sell its Coregas industrial gas manufacturer to NSHD, a Japanese firm, for $770 million.

All of the big four banks were lower for a second day, with NAB dropping 2.1 per cent, CBA falling 2.9 per cent, Westpac retreating 1.5 per cent and ANZ losing 1.8 per cent.

In the heavyweight mining sector, BHP was down 0.6 per cent and Rio Tinto slipped 0.7 per cent while Fortescue added 1.2 per cent.

The Australian dollar was buying 62.28 US cents, from 62.31 US cents at Thursday’s ASX close.