Australian equities experienced a slight downturn on Friday, with the S&P/ASX 200 index slipping by 0.39% to 7,719.50 on Friday’s afternoon trade. The market sentiment was cautious as investors awaited the Reserve Bank of Australia's monetary policy meeting scheduled for June 18. The benchmark index recorded a weekly decline of 1.6%, reflecting the prevailing uncertainty among market participants.
Financial stocks, particularly sensitive to interest rate movements, faced downward pressure, with the "Big Four" banks witnessing losses ranging from 0.03% to 0.6%. The financial sector index is poised for its worst week since mid-April, highlighting the challenges faced by banking stocks amidst macroeconomic uncertainties.
Simultaneously, mining stocks registered declines, with the mining sub-index falling by as much as 0.4% to its lowest level since March 27. Despite buoyant iron ore prices, mining equities struggled, heading towards their fourth consecutive session of losses. The sector is on track for its worst week since August 18, 2023, underscoring the broader market's subdued sentiment towards resource stocks.