Business

ASX seesaws after biggest weekly loss since 2020 on interest rate

Australian shares seesaw at open as investors worry that aggressive monetary policy tightening could pull the global economy into recession.

ASX 200 was flat at 6,474 at 10.24am AEST.

At the same time, the Australian dollar was up at 69.49 US cents.

All 11 sectors were lower over the last week. Although little changed, the consumer staples sector was the best performing in early trade. It was down 3 per cent for the past five days.

Pointsbet (+11.2pc), Harvey Norman (+4.8pc) and Home Consortium (+3.6pc) were the top movers.

Meanwhile, Bega Cheese (-6.9pc), De Gray Mining (-6.1pc) and Beach Energy (-5.9pc) were the worst performers.

Brent crude oil was up, trading at $US113.77 a barrel, by 10:31am AEST.

Biggest weekly loss since 2020

World stocks on Friday closed out their steepest weekly slide since the pandemic meltdown of March 2020, as investors worried that tighter monetary policy by inflation-fighting central banks could damage economic growth.

The US Federal Reserve’s biggest rate hike since 1994, the first such Swiss move in 15 years, a fifth rise in British rates since December and a move by the European Central Bank to bolster the indebted south all took turns roiling markets.

The Bank of Japan was the only outlier in a week where money prices rose around the world, sticking on Friday with its strategy of pinning 10-year yields near zero.

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