The Australian Securities Exchange has booked its longest continuous losing streak in eight years, as skyrocketing global crude prices stoke fears of wider inflationary pressures that will erode household grocery budgets and cut into corporate profit margins. On Thursday, the benchmark ASX 200 declined 21.20 points, or 0.24%, to close at 8665.80, while the broader All Ordinaries index dropped 28.10 points, or 0.32%, to settle at 8887.60. This eighth consecutive day of declines marks the local bourse’s worst performance since 2018, with the Australian dollar also sliding 0.19% to trade at 71.14 U.S. cents by market close.
Against the overall downward trend, eight out of 11 tracked market sectors finished the trading session in positive territory, with the broad market decline pulled down primarily by heavy losses in consumer staples and materials. The steepest drop in the consumer staples segment came from national supermarket giant Woolworths Group, whose shares plummeted 7.78% to $34.39. While the retailer reported a 4.5% year-over-year rise in sales to $18.1 billion, CEO Amanda Bardwell warned that spiking fuel costs driven by the global oil price surge are creating cascading pressure across the entire supply chain. Woolworths confirmed that multiple suppliers have already begun moving to pass higher energy-driven operational costs onto retailers, a shift that will eventually flow through to higher prices for consumers at checkout. Rival leading supermarket chain Coles followed suit, with shares falling 3.62% to $22.11, while other consumer-focused firms including A2 Milk and Endeavour Group also recorded moderate losses.
Industry analysts say the current market downturn stems from a dual pressure of sky-high crude prices and growing expectations of another incoming interest rate hike from the Reserve Bank of Australia. Josh Gilbert, lead analyst at multi-asset trading platform eToro, explained that the current market shift is a direct reflection of how energy price shocks ripple through the entire economy. “When 20 per cent of the world’s oil supply is at risk, it doesn’t just impact energy prices, it flows through to everything from petrol at the pump to grocery bills, and Woolworths’ profit warning today is exactly that story playing out in real time,” Gilbert noted. As of Thursday, financial markets were pricing in a 77% probability that the RBA will raise interest rates at its next policy meeting, leaving Australian households caught between rising living costs and higher borrowing costs that squeeze disposable income.
The global oil price surge that triggered the latest market jitters comes amid escalating geopolitical risk that has threatened key global shipping chokepoints. Brent Crude futures jumped to a fresh four-year high this week, briefly touching $US126 per barrel after U.S. officials warned they are bracing for an extended disruption to shipping through the Strait of Hormuz, a critical route that carries roughly a fifth of global oil supplies.
The elevated oil prices pulled down share values for Australia’s big three iron ore miners: BHP fell 2.24% to $53.72, Rio Tinto declined 1.99% to $167.40, and Fortescue Metals dropped 2.82% to $19.61. Spot iron ore prices held steady at $US107.20 per tonne through the session. Gains in the energy sector partially offset these market declines, with top Australian oil and gas producers posting solid growth: Woodside Energy rose 1.51% to $33.55, Santos gained 2.96% to $8, and fuel retailer Ampol closed up 1.71% at $35.17.
A handful of positive corporate announcements also delivered isolated gains in other segments. ASX Limited itself saw shares jump 5.10% to $60.80 after announcing Darren Yip as its new interim chief executive. Mineral Resources also climbed 2.96% to $63.71 after the mining firm upgraded its full-year production guidance for its Onslow iron ore project, as well as its Wodgina and Mount Marion lithium operations.