FX.co ★ Australian Shares Retreat After Record Highs, Weekly Gain Intact

Australian stocks fell 38 points, or 0.4%, to 9,234 in Friday morning trade, ending a five-session winning streak as investors locked in profits after the market’s recent record highs. U.S. equity futures also softened following overnight losses on Wall Street, pressured by geopolitical tensions that pushed oil prices higher and reignited inflation concerns, strengthening expectations of further Federal Reserve rate hikes. Sentiment was additionally cautious ahead of July trade data from China, Australia’s largest trading partner, due later today.

On the domestic front, the Reserve Bank is set to meet next week against a backdrop of slowing economic activity and persistent cost pressures, despite three rate increases so far this year. Sector-wise, commercial services, healthcare, and industrials dragged the market lower, partially offset by gains in energy minerals and utilities. Major miners BHP (-0.4%) and Rio Tinto (-0.7%) slipped after reports they were summoned to a critical-minerals meeting with President Trump. Despite the pullback, the market remains up 2.9% for the week, supported by sustained buying and a rebound in Australia’s June exports.