Australian shares slip as surging oil prices and mixed earnings hit market, ‘huge week’ of earnings looms

Mixed earning results and surging oil prices combined to hurt the Australian sharemarket on Friday, which continued its downward trend.

The benchmark ASX 200 slipped 24.90 points or 0.27 per cent to 9058.90, while the broader All Ordinaries dragged 28.80 points or 0.31 per cent to 9269.70.

Six sectors fell on a mixed day of trading - led by consumer discretionary, healthcare and technology stocks that all dropped by more than 1 per cent.

Retail giant Wesfarmers shares dropped 2.34 per cent to $82.37, JB Hi-Fi sold off 1.44 per cent to $69.20, and Harvey Norman fell 1.09 per cent to $4.53.

Despite a strong run throughout the week, healthcare shares gave back some of their gains on Friday.

CSL shares fell 1.69 per cent to $168.30, Pro Medicus slumped 6.99 per cent to $191.60 and Sonic Healthcare dragged 1.40 per cent to $21.08.

Offsetting these falls were gains in the energy sector as oil prices rose to a three week high.

Brent crude topped $US93 after US Treasury Secretary Scott Bessent promised “the toughest sanctions in history” on Iran, while the Trump administration called on allies and even China to help with their economic hit on Tehran.

These rising oil prices reignited inflation concerns globally, hitting bond prices and helping to drive the Australian dollar higher.

Australia’s dollar rallied against the greenback to buy 71.48 US cents.

IG senior market analyst Tony Sycamore said the market was down about 0.70 per cent this week, as earnings results continued to trickle through.

“The Health Care sector has been the clear standout, set to finish the week about 9.50 per cent higher, with CSL’s earnings report the main catalyst — the biotech giant is on track to finish this week more than 23 per cent higher,” he said.

“Commonwealth Bank led the declines, falling 5.15 per cent this week after a 6 per cent drop the previous week.”

Mr Sycamore said the market will be watching a “huge week” of local earnings next week, which includes the likes of the major supermarkets, Domino’s Pizza and WiseTech Global.