ASX 200 Slips as Global Growth Fears and Rate Hikes Weigh on Sentiment

The S&P/ASX 200 declined 0.51% to close at 7,168.30, extending a downward trend driven by escalating concerns over global economic growth and the impact of rising interest rates. The broader All Ordinaries Index followed suit, dropping 0.50% to 7,353.70. The downturn followed a volatile session on Wall Street, where the Nasdaq and S&P 500 saw significant drops of 3.2% and 2.5% respectively. This global contagion hit Australian tech and financial stocks particularly hard, as investors pivoted away from growth-sensitive assets. In the tech sector, Block and Appen both tumbled nearly 5%, while the 'big four' banks—NAB, CBA, and ANZ—each saw losses exceeding 1%. Gold miners also faced pressure, with Northern Star and Newcrest dropping over 2%. Conversely, the mining sector provided a slight buffer; Rio Tinto gained nearly 2%, while BHP and Fortescue rose approximately 1%. Energy stocks remained largely weak, with Origin Energy declining more than 1%. Economic indicators added to the bearish tone, as S&P Global reported a slowdown in manufacturing expansion with a PMI of 50.4, down from November's 51.3. Services and composite PMIs also retreated to 46.9 and 47.3, respectively, signaling a cooling domestic economy. In the currency market, the Australian dollar was trading at $0.670.