Australian shares set for first weekly drop in six as Middle East conflict weighs
Australian shares fell to a two-week low in early trade on Friday, poised to snap a five-week winning streak, as escalating Middle East tensions dampened investor sentiment and softer metal prices weighed on local miners.
The S&P/ASX 200 index was down 0.3% at 8,500 points, as of 0033 GMT.
The benchmark has lost 0.6% so far this week, and on track for its first weekly decline in six weeks, if losses hold.
Globally, investors stayed risk-averse as tensions between Iran and Israel continued to escalate, with Israel targeting nuclear sites in Iran amid a persistent absence of a ceasefire between the two long-standing adversaries.
'With US markets offline and no fresh news – other than speculation about the possibility of US intervention – related to the potential war between Israel and Iran, risk was taken off the table,' said Kyle Rodda, senior financial market analyst with capital.com.
Australian heavyweight miners lost 0.6%, hitting their lowest levels since April 17, as lower copper prices weighed on the metals sub-index.
Mining behemoth BHP Group fell 0.3% while iron ore miner Rio Tinto lost 1%.
For the week, miners have shed 4.5% so far, on track for their worst week since March 31.
Australian shares hit 2-week low as miners, gold stocks fall; Fed holds rate
The financials sub-index slipped 0.3%, with the 'Big Four' banks declining between 0.1% and 0.3%.
Energy stocks traded largely flat as investors assessed the potential impact of Middle East tensions on global oil supply.
Despite the subdued session, the sector has advanced 5.3% so far this week and is on track for its fourth straight weekly gain.
Woodside Energy rose 0.7% while smaller rival Santos added 0.4%.
Information technology firms lost 0.2% and Australian health stocks shed 0.3%. Markets in New Zealand were closed for a public holiday.
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