The S&P/ASX 200 fell 0.2% to close at 8,506 on Friday, marking its fourth straight session of losses and a two-week low, as rising Middle East tensions continued to weigh on global markets. The index also declined 0.5% for the week, ending a five-week winning streak. Investors are now bracing for a possible US decision within two weeks, as President Trump weighs a potential direct strike on Iran.
Meanwhile, China’s central bank left its loan prime rates unchanged, offering modest support to sentiment through policy stability. At home, a mixed jobs report did little to shift expectations, with a July RBA rate cut still priced at a 75% probability. Markets now await upcoming PMI figures for fresh insight over Australia’s economic health. On the corporate side, major iron ore producers led losses, such as Fortescue (-0.5%) and Rio Tinto (-1.3%), amid a drop in Chinese steel production. Financials also came under pressure, slipping 0.7%. Energy and gold stocks, however, provided support.
