ASX set for worst week since August after global rout

The Australian share market is on track for its worst weekly performance in three months, falling for its third-straight session after global equities sank overnight.

The benchmark S&P/ASX200 index was down 77.9 points, or 0.95 per cent, to 8,082.1 at noon AEDT on Friday, while the broader All Ordinaries fell 79.4 points, or 0.94 per cent, to 8,342.7.

For the week, the ASX200 was 1.5 per cent lower. The bourse has not fallen by as much in the space of a week since August.

Friday’s fall followed declines on Wall Street overnight, with the Dow Jones down 0.9 per cent, the S&P500 slipping 1.86 per cent and the tech-heavy Nasdaq tanking 2.76 per cent.

Tech stocks drove US markets lower after disappointing earnings outlooks from Microsoft and Meta, said Westpac senior economist Pat Bustamante.

“There was a sea of red across major global equity markets,” he said.

“European stocks were also lower as the disappointing US tech earnings hit global risk sentiment.

“The stronger than expected euro area inflation read, along with the UK budget, which is being characterised as expansionary, dashed hopes of front-loaded rate cuts, also weighing on equities.”

Locally, financial stocks were the worst performers, down 1.5 per cent.

Macquarie Group sank 4.2 per cent after the financial services conglomerate reported half-yearly earnings seven per cent lower than analyst expectations.

Its profit for the six months ended September 30 was $1.6 billion, up 14 per cent from the prior corresponding period, but 23 per cent lower than the half ended March.

Increased income from its asset management and banking arms were offset by weaker performance in commodities and markets.

All the big four banks also shed more than one per cent.

CBA, ANZ and Westpac were down 1.1 per cent, while NAB was 1.8 per cent lower.

The only sector in the black was energy, as oil prices rose for the second consecutive day amid ongoing tensions in the Middle East.

Australia’s biggest oil and gas producer Woodside was 0.4 per cent higher, but Santos edged 0.1 per cent lower.

Miners were also weighing heavily on the index, with BHP down 0.7 per cent, Rio Tinto 0.2 per cent and Fortescue 0.8 per cent, reflecting falls in the iron ore price.

Next week will be a consequential one for markets, with the outcome of the US election playing on traders’ minds as well as central banks in Australia, the US and the UK meeting to set interest rates.

The Australian dollar was buying 65.74 US cents, from 65.68 US cents at Thursday’s ASX close.