19.03.202606:21:54UTC+00Australian Stocks End Sharply Lower

The S&P/ASX 200 fell 1.7% to close at 8,498 on Thursday, ending a two-session winning streak and marking a four-month low, as mixed labor market data did little to shift expectations of further interest rate hikes. February employment surged by 48,900, more than double the projected 20,000 increase, but the unemployment rate unexpectedly rose to 4.3% as more people entered the labor force. Despite this uptick, the jobless rate remains historically low, reinforcing the Reserve Bank’s view that the economy can absorb tighter monetary policy.

At the same time, the central bank cautioned that the conflict in the Middle East poses a material risk to the domestic economy and flagged the potential for a more severe global shock. Ongoing Iranian attacks on energy infrastructure in the region have reignited inflation worries as oil prices climb again. The energy sub-index jumped more than 5% to its highest level since February 2024. Still, most sectors declined, led by banks, miners, and technology stocks.