To The Moon

The Australian stock market recorded its most significant weekly decline in twelve months, driven by Middle East conflict unsettling global energy markets and amplifying inflation concerns.

The S&P/ASX 200 Index retreated by 89.30 points, equivalent to a 1% decrease, settling at 8851.

Kyle Rodda, a senior market analyst at Capital.com, noted that markets have begun to factor in a potential oil price shock. This development has reduced expectations for additional interest rate cuts in the United States and inverted the swaps curve in the Eurozone. Concurrently, bond markets adjusted to price in more than two potential interest rate hikes from the Reserve Bank of Australia before the year concludes, following a surge in yields.

"The likelihood of a persistent and worsening supply shock that severely disrupts energy markets, leading to higher inflation and weaker economic growth, has increased," Rodda stated.

During Asian trading, oil prices declined by 1.1% to $84.49 per barrel as the US administration considered measures to counter the spike in oil and petrol prices amidst the Iran conflict. On the local market, Woodside Energy advanced 1% to $30.75, and Santos increased by 1.9% to $7.46, despite its chief executive selling shares worth $5.6 million. Viva Energy rose 1.5% to $2.10 after UBS reaffirmed its buy recommendation.

Gold mining stocks were sold off as the precious metal experienced its first weekly drop in over a month, with investors shifting into the US dollar. Catalyst Metals plummeted 11.3% to $7.04, Westgold Resources fell 8.2% to $6.63, and Newmont declined by 2.7% to $165.14.

Iron ore miners also faced selling pressure, even though iron ore prices rose above $101 per tonne. This occurred after China's state-supported buyer instructed traders to halt purchases of new BHP shipments, citing violations of existing purchase restrictions. BHP dropped 4.2% to $52.81, Rio Tinto decreased 3.6% to $158.67, and Fortescue edged down 0.7% to $19.25.

The technology sector was the standout performer, jumping 4.6%. WiseTech Global surged 10.8% to $52.72, and Xero advanced 4.5% to $87.63.

In corporate developments, Magellan Financial soared 9.3% to $11.55 following the acquisition of a 5.1% stake in the company by the prominent Lowy Family. This news comes after Magellan announced a merger with Barrenjoey.

SkyCity Entertainment fell 4.2% to 69¢ as it confronts potential class action litigation related to its online casino operations in New Zealand. SkyCity stated it denies any liability and will vigorously defend against the proceedings.

Uranium producer Deep Yellow dropped 11.8% to $2.17 after reporting a half-year loss of $7.78 million, which widened from a loss of $2.47 million during the same period last year.