Strong gains by the mining sector haven't been enough to keep the Australian share market in the green, while the dollar has climbed to its highest level of 2025 against its faltering US counterpart.
The benchmark S&P/ASX200 index gave up its modest morning gains on Friday to finish on the lows of the day, losing 36.6 points, or 0.43 per cent, at 8,514.2.
The broader All Ordinaries fell 29.9 points, or 0.34 per cent, to 8,743.7.
The Aussie, meanwhile, was buying 65.50 US cents, up from 65.29 US cents on Thursday and its highest level against the greenback since mid-November.
The US dollar has weakened in recent days on concerns that President Donald Trump might lessen the independence of the Federal Reserve by appointing a more dovish "shadow" chairman before Jerome Powell's term officially expires.
The ASX200 finished the week up 0.1 per cent after a rally on Tuesday following the Iran-Israel ceasefire.
It's the ASX's sixth winning week out of the past seven.
AMP chief economist Shane Oliver said shares had climbed a wall of worry over the past six months as Trump upset the global trading system with tariff hikes and as conflict in the Middle East threatened to disrupt oil supplies.
"Fortunately, Trump backed down on the worst of his tariffs for now and the Middle East threat has fizzled, leaving US, global and Australian shares just 0.7 per cent or less below record highs and on track for another financial year of strong returns," Dr Oliver said.
With one more day of trading left in 2024/25, the ASX200 is on track to deliver an annual return of 13.9 per cent, including dividends.
The materials sector rose 2.3 per cent on Friday, its best day since a 6.3 per cent gain on April 10, as iron ore prices climbed to $94.50 a tonne.
BHP advanced 3.9 per cent to $108.97, Rio Tinto gained 4.6 per cent to $108.97 and Fortescue added 3.6 per cent to $15.46.
Goldminer Northern Star dipped 2.7 per cent, but peer Evolution climbed 0.7 per cent as the yellow metal changed hands at $US3,306 an ounce.
In industrials, Reece plunged 18.7 per cent to a two and a half year low of $14.12 after the plumbing supplier said that it expected to earn between $548 million and $558 million this financial year, down from $681 million it made in 2023/24 and well below the $580 million the market was expecting.
Chairman and CEO Peter Wilson said the expected results reflected the backdrop of continuing macroeconomic headwinds, with recent interest rate cuts in Australia and New Zealand not yet translating into improved housing activity.
"We have seen similar cycles before and remain confident in our long-term approach," he added.
All of the big four banks finished lower, with CBA dropping 2.8 per cent to $185.36, Westpac retreating 1.9 per cent to $33.90, ANZ declining 1.8 per cent to $29.20 and NAB dipping 1.6 per cent to $39.26.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Friday down 36.6 points, or 0.43 per cent, at 8,514.2.
* The broader All Ordinaries dropped 29.9 per cent, to 8,743.7.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.50 US cents, from 65.29 US cents at 5pm on Thursday
* 94.53 Japanese yen, from 94.33 Japanese yen
* 55.96 euro cents, from 55.90 euro cents
* 47.69 British pence, from 47.65 pence
* 107.93 NZ cents, from 107.94 NZ cents
