Investors moved the ASX lower after accepting US rates are almost certain to rise next week due to record inflation.
The ASX dropped almost one per cent on Friday and most share categories fell, in keeping with Wall Street and the majority of Asian markets.
Energy and materials shares had minor gains after commodity prices, which have soared since Russia invaded Ukraine last month, stabilised for a second day. Brent crude sold for $US109.53 per barrel.
The big overnight news was the annual US inflation reading of 7.9 per cent which experts say almost guarantees the Federal Reserve will raise rates by a quarter of a per cent next week.
Deep Data Analytics chief executive Mathan Somasundaram was among them.
“The US needs to strengthen its dollar or inflation will get out of control,” he said.
“They need to rein inflation in before they lose control.”
Mr Somasundaram noted a rate rise was becoming more likely in Australia, too.
“We’ve seen the RBA backflip by saying a rate rise is plausible, after saying there would be none for a few years.”
Governor Philip Lowe this week told a conference an increase in the cash rate from its record low was plausible this year.
Technology stocks, which fare worst amid higher rates, slipped most on the ASX. They dropped three per cent.
There were losses of two per cent for shares in healthcare, property and consumer discretionaries.
Despite the losses, the main index stayed above a key trading level, 7000 points.
The benchmark S&P/ASX200 index closed down 67.2 points, or 0.94 per cent, to 7063.6 points.
The index is down about 500 points from its record high in August last year.
The All Ordinaries index closed lower by 71.6 points, or 0.97 per cent, to 7339.3 points.
For the week, shares lost 0.66 per cent.
In stock news and moves, Breville is buying Italian-based coffee equipment maker LELIT for about $169 million.
Breville is paying half the amount in cash and the remainder by stock valued at $27.64 per share.
Breville was down two per cent to $26.24.
Engineering and building group Hochtief has gained 84 per cent of CIMIC through an off-market takeover.
Many investors have taken Hochtief’s offer of $22 per share since the $1.5 billion bid began in February.
If Hochtief gains 100 per cent control, CIMIC will delist from the ASX.
CIMIC was little changed at $22.02.
Western Australian wholesaler Catalano’s Seafood made its ASX debut but went backwards.
Catalano’s dropped 10 per cent to 18 cents.
The big miners did better than most of the market. Rio Tinto gained about one per cent to $111.70. BHP and Fortescue had minor falls and gains respectively.
A smaller player, Nickel Mines, scrapped its share sale to retail investors after stocks fell 28 per cent in the past three days.
Shareholder Tsingshan group has a short position in nickel on the London Metals Exchange and the price surged earlier this week.
Nickel Mines was up five per cent earlier but closed lower by one per cent to $1.20.
In banking, ANZ was best of the big players and improved by less than half a per cent to $25.85.
The Australian dollar was buying 73.50 US cents at 1722 AEDT, more than the 73.13 US cents at Thursday’s close.
ON THE ASX
* The benchmark S&P/ASX200 index closed down 67.2 points, or 0.94 per cent, to 7063.6 points on Friday.
* The All Ordinaries index closed lower by 71.6 points, or 0.97 per cent, to 7339.3 points.
* At 1722 AEDT, the SPI200 futures index was up 25 points, or 0.35 per cent, to 7076 points.
