Australia Market tumbles 2%

Australia share market finished lower on Thursday, 01 September 2022, as risk aversion selloff triggered across the board amid economic growth worries after latest survey data showed Australia's manufacturing activity slumped to a contraction territory in August.

Meanwhile, selloff pressure intensified after several Federal Reserve and European Central Bank officials reiterated their support for further interest-rate hikes to combat inflation.

At closing bell, the benchmark S&P/ASX200 index dropped by 141.16 points, or 2.02%, to 6,845.60. The broader All Ordinaries index declined 146.22 points, or 2.02%, to 7,079.92.

Materials stocks declined. BHP Group dropped after trading ex-dividend, while Rio Tinto fell about 2% in line with the broader market, despite the miner said it would buy the remainder of Canada's Turquoise Hill for $3.3 billion that would give the miner access to the massive Oyu Tolgoi project in Mongolia.

Gold stocks declined, as sentiment for the precious metal was dampened following a robust U.S. dollar. Northern Star Resources and Newcrest Mining fell 5.1% and 3.7%, respectively. Financials slipped 1.3%, with the "Big Four" banks dropping between 0.8% and 1.5%

ECONOMIC NEWS: The Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) dropped 3.2 points to 49.3 in August, indicating a slight contraction (readings below 50 points indicate contraction in activity, with lower results indicating a faster rate of contraction). This is the first time the index has contracted since January 2022 following the Omicron outbreak.

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