The Australian sharemarket started the week lower as unexpectedly strong U.S. jobs data over the weekend dampened risk appetite, while fresh U.S. sanctions on Russia boosted oil producers.
The S&P/ASX 200 index fell 705.7 points or 1.3%, to 8,188.4, with nine of 11 sectors registering declines.
Investor sentiment soured following Friday's U.S. nonfarm payrolls report. The data revealed 256,000 jobs added in December, surpassing expectations of 160,000 and reinforcing the case for a pause in rate cuts by the Federal Reserve.
This development triggered a sell-off in the banking and technology sectors, with Macquarie shedding 2.4%, Commonwealth Bank down 2.1%, NAB sliding 1.9% and Westpac dropping 2.2%, while Block shed 4.3%, Appen lost 1.4% and Megaport fell 3.1%.
Retail shares were also hit hard, led by a 23.1% plunge in Myer’s shares after a disappointing trading update. Premier Investments followed suit with a 15.9% decline.
Energy stocks bucked the trend, with the sector gaining 2% as Brent crude oil prices climbed to four-month highs of US$81 per barrel amid intensified U.S. sanctions on Russia. Woodside Energy rose 2%, and Santos advanced 2.2%.
Meanwhile, Star Entertainment added 18.2%, as investors bought the dip after last week’s 42.1% plunge caused by concerns over its financial health, with both the Queensland and New South Wales governments declining to save the casino and resort operator.
On the bond markets, yields on 10-year and 2-year Australian government bonds increased by 0.8% and 2.2%, reaching 4.645% and 4.020%, respectively.