On Monday, Australian shares experienced a downturn, driven by declines in key sectors such as financials and gold stocks. The S&P/ASX 200 index retreated by 0.46% to reach 7,752.50, marking its third consecutive session of losses. Investors exhibited caution as geopolitical concerns escalated following Iran's retaliatory attack on Israel over the weekend, heightening fears of a broader regional conflict.
Iran's actions over the weekend, involving the launch of explosive drones and missiles at Israel, were in response to a suspected Israeli attack on its consulate in Syria earlier in April. This marked a significant escalation, as it represented the first direct attack on Israeli territory, amplifying concerns about potential geopolitical repercussions.
Furthermore, resilient economic data from the United States, particularly the hotter-than-expected March inflation reading, compelled investors to reassess expectations regarding the timing of interest rate cuts by the Federal Reserve this year. The prospect of delayed rate cuts contributed to dampened market sentiment.
In Sydney, rate-sensitive financials bore the brunt of the market downturn, declining by 0.68% for the fourth consecutive session. Major banks, collectively known as the "Big Four," witnessed declines ranging from 0.5% to 1%.
Gold stocks also faced significant downward pressure, slipping by 1.64% and heading towards their worst session in over three weeks. Leading gold producers, Northern Star Resources (ASX: ASX:NST) and Evolution Mining (ASX: EVN), experienced significant declines.
Technology stocks mirrored losses seen in their Wall Street counterparts, with prominent players such as Block (ASX: SQ2) and Xero (ASX: XRO) shedding 2.16% and 1.59%, respectively.
Healthcare and real estate stocks saw declines of 1.01% and 0.96%, respectively, contributing to the overall negative sentiment in the market.
However, the decline in the ASX 200 index was partially offset by gains in mining and energy stocks, buoyed by robust commodity prices. Mining giants BHP Group (ASX: ASX:BHP) and Rio Tinto (ASX: ASX:RIO) registered gains of 0.75% AND 3.72%, respectively.
Meanwhile, New Zealand's benchmark S&P/NZX 50 index .NZ50 declined by 0.9% to reach 11,829.10, reflecting the broader downturn in the region's equities markets.