SYDNEY, March 21, 2026, 04:57 AEDT
Australian shares slipped for a second day on Friday. The S&P/ASX 200 closed at about 8,428.4, a drop of 0.82%, according to LSEG figures on Reuters. S&P Dow Jones Indices reported a similar finish for the benchmark at session’s end. 1
Risk assets picked a rough moment for a pullback. Brent crude hovered near $109.35 a barrel on Friday, Reuters noted, while global equities notched a third day in the red. Traders are now recalibrating, betting central banks could be forced to hold rates higher if the Middle East situation sustains the pressure on fuel prices. 2
Australia is ahead here. Earlier this week, Reuters said the Reserve Bank of Australia raised its cash rate to 4.1%, marking a second monthly hike in a row. Policymakers flagged the war as a fresh inflation threat. 3
The labour report out Thursday didn’t provide much clarity. Employment climbed by 48,900 in February, but the jobless rate also ticked up to 4.3%, Reuters said. AMP’s My Bui described the numbers as “leaned slightly weaker on the headline measures.” For Harry McAuley at Oxford Economics Australia, the “key risk” was still tied to how severe and prolonged the disruptions to oil and gas routes get in the Middle East. 4
Australia leans harder on fuel imports than many of its peers. Last year, the country brought in 84% of its petroleum products, according to Reuters. Diesel reserves have slipped to roughly 30 days. Prime Minister Anthony Albanese told drivers to hold off on panic buying. CLSA’s Baden Moore put it bluntly: farmers and miners are “entirely dependent on those imports.” 5
MarketIndex numbers confirm Friday’s drop locked in a third consecutive weekly decline. Materials slid 1.61%, with financials down 1.09%. Healthcare managed a 1.2% gain, and energy edged up 0.71%. Rio Tinto tumbled 2.9%, NAB slipped 2.3%. Sectors sensitive to weaker growth and pricier debt kept feeling the squeeze. 6
MarketIndex data showed an even starker divide the day before. The ASX 200 lost 1.65% Thursday. Materials shares tumbled, down 4.83%. Energy, meanwhile, surged 5.08%, lifted by Brent’s leap past $110. Woodside scored a 7.2% gain as investors chased pure-play oil. 7
Oil’s pullback might offer some relief, but it’s not a sure fix. Brent prices, which had spiked above $115 earlier this week, have slipped, according to Reuters’ Morning Bid. Yet, traders are still pricing in a 57% probability the RBA lifts rates in May. Canberra, meanwhile, is scrambling to address fuel shortages at home. If these strains stick around, further downside for miners, banks, and consumer stocks can’t be ruled out. 8
