ASX 200 falls 2.94% to 8,741.2 in its worst week since early March as bond yields near 5% and Brent tops US$100
ASX 200 week close: 8,741.2 (-2.94%) S&P 500 Friday close: 7,656.98 (+0.86%) Sentiment: bearish
The S&P/ASX 200 closed the week ending 11 September 2026 at 8,741.2, down 264.7 points or 2.94%, its steepest weekly fall since early March, as the US 10-year Treasury yield rose to 4.98% and Brent crude gained 8.65% to US$104.61 a barrel. Sunrise Energy Metals SRL.AU rose 45.05% to $22.12 on a US$400 million US government loan commitment for its Syerston scandium project, and Nine Entertainment NEC.AU fell 15.85% to a record low of $0.77. Australia's 3-year bond yield crossed 5% on Friday for the first time in about 15 years after Westpac became the last of the four major banks to forecast an RBA cash-rate hike.
The week on the ASX
Four of the five sessions closed lower, and Friday's 8,741.2 was the lowest close since 2 July. Monday added 5.0 points to 9,010.9 as Singapore iron ore traded above US$100 a tonne for the first time in seven weeks. Tuesday lost 1.00% to 8,920.8 after Westpac moved to a November hike call, Westpac-Melbourne Institute consumer sentiment fell 5.2% to 84.4, and NAB business conditions turned negative at -1 for the first time in six years. Wednesday slipped 0.11% to 8,911.4 as Energy and Materials gains offset a 1.02% fall in Financials. Thursday dropped 1.03% to 8,819.4 with all 11 sectors lower as the US 10-year reached 4.84%, and Friday lost 0.89% to 8,741.2 as Materials fell 3.63%.
BHP.AU fell 4.05% on Friday to $60.87 and ended the week down 2.22%, after LME copper dropped 3.1% on Thursday on a Reuters report that the White House had not decided on refined-copper tariffs. The S&P/ASX 200 volatility index rose from 10.60 to 14.36 across the week, a 35% increase. Friday's breadth was 47 advancers to 150 decliners across the ASX 200, and the index now sits 0.31% above its 2025 close of 8,714.3.
Sector scorecard (5-day)
- Best: Energy (+2.39%)
- Worst: Information Technology (-8.57%)
- Dispersion (best minus worst): 10.96 pts
- Utilities (+0.51%) was the only other sector to rise; Industrials (-1.28%) and Financials (-2.33%) fell less than the index.
- Consumer Discretionary (-4.73%), Materials (-3.91%), Health Care (-3.77%) and A-REITs (-2.97%) all fell more than the index, and the All Ordinaries Gold index lost 5.59%.
- KAR.AU +5.48%, STO.AU +4.63%, NHC.AU +3.77% and WDS.AU +3.24% carried Energy; WTC.AU -13.27% and TNE.AU -8.97% joined Xero in the technology fall.
Top movers: week ending 11 September
| Ticker | Week | Reason |
|---|---|---|
| SRL.AU | +45.05% | US$400 million US government loan commitment for the Syerston scandium project |
| INA.AU | +8.77% | Rejected a $4.75 cash proposal from Warburg Pincus tied to dropping its Peet deal |
| MI6.AU | +7.98% | Bullabulling gold project update; investment decision in 2027, production targeted for 2028 |
| MGH.AU | +7.27% | Unannounced, likely flow-driven. |
| SBM.AU | +6.67% | Agreed to divest its New Simberi stake to Lingbao for $410 million plus $43 million |
| NEC.AU | -15.85% | Record low of $0.77; went ex-dividend 3 cents on 10 September with no announcement |
| XRO.AU | -15.52% | Six straight losses in a technology de-rating; no announcement |
| A4N.AU | -15.50% | Gave back last week's 18.35% post-result gain; no announcement |
| DYL.AU | -14.76% | Uranium selling after Ord Minnett and Goldman Sachs downgraded Paladin; PDN.AU -12.14% |
| FRS.AU | -14.29% | 16.4 million fee shares quoted on 8 September after the Edna May gold acquisition |
Friday US session
- S&P 500: 7,656.98 (+0.86%)
- Nasdaq: 26,333.04 (+0.96%)
- Dow: 52,573.29 (+0.98%)
- VIX: 15.84 (-11.21%)
The S&P 500 rose 0.86% on Friday 11 September 2026 to 7,656.98 after August CPI matched forecasts and Brent fell 2.81% on a report that Iran would meet Gulf states in Oman to discuss the Strait of Hormuz. Headline CPI rose 0.4% in the month and 3.4% over the year, with gasoline up 27.4% year on year and responsible for over a third of the monthly increase. Core CPI rose 0.3% in the month, a tenth above consensus, and 2.4% over the year. Thursday's August producer prices ran at 5.4% year on year against 5.3% expected. Across the five sessions the S&P 500 lost 0.80%, the Nasdaq 0.66% and the Dow 1.57%.
Brent settled at US$104.61 after Thursday's US$107.63 settle, its highest since May, and a Friday intraday high above US$110. WTI ended at US$100.05, up 9.37% for the week. Gold December futures closed at US$4,409 an ounce, down 1.5% on the week, as the US 10-year yield finished at 4.98%. AUD/USD ended the week at 0.7173, down 0.44%, and CSL.AU, which reports in US dollars, fell 4.24% over the same five sessions.
Macro themes that played out
Bond yields drove the week. The US 10-year Treasury yield closed at 4.98% on Friday from 4.84% on Thursday, itself a three-year high, and Australia's 3-year yield passed 5% on Friday, its highest in about 15 years. Information Technology lost 8.57%, Consumer Discretionary 4.73% and A-REITs 2.97%, the three sectors whose valuations lean most on the discount rate.
The RBA cash rate sits at 4.35% after 25 basis point rises in February, March and May 2026 and holds in June and August. Westpac chief economist Luci Ellis moved the bank to a November hike call on Tuesday 8 September, which puts NAB, ANZ, CBA and Westpac all at 4.60%; NAB, Deutsche Bank and UBS expect the move on 29 September, and RBC joined the November group on Wednesday. Deputy Governor Andrew Hauser and Assistant Governor Sarah Hunter both spoke on Tuesday, and by Friday futures priced a 25 basis point hike for the 29 September meeting.
US strikes on three Iranian tankers over the weekend of 5 and 6 September, Iran's declaration of a restricted maritime zone beyond the Strait of Hormuz, Houthi strikes on Saudi energy sites and reports of explosions near Kharg Island on Wednesday each pushed Brent higher from its US$96.28 settle of 4 September. IG put the probability of a 25 basis point Fed hike to 3.75% to 4.00% at about 70% on Friday, up from 48.4% a week earlier after Governor Waller's hold comment.
China's August CPI rose 0.8% year on year from 0.5% in July and PPI 3.8%, both released on 9 September, a day after August exports of US$401 billion, up 25% year on year, produced a US$119 billion trade surplus. Singapore iron ore rose above US$101 a tonne on Monday and fell as low as US$96.40 on Friday, a weekly loss of about 3%, as steel mill margins weakened. Copper set a record US$14,533 a tonne on the LME at the start of the week and fell 3.1% on Thursday. RIO.AU fell 4.32% and FMG.AU 3.19%, and the lithium producers PLS.AU (-11.20%) and LTR.AU (-12.65%) fell with Chinese lithium carbonate at CNY 144,750 a tonne.
Week ahead: Mon 14 to Fri 18 September (AEST)
- Mon 14 Sep: 12:30 RBA Assistant Governor Sarah Hunter fireside chat at the Regions Rising summit in Canberra; China August new yuan loans and aggregate financing due this week; 22:30 US Empire State manufacturing survey.
- Tue 15 Sep: 11:30 China August house prices; 12:00 China August industrial production, retail sales and fixed-asset investment, with retail sales forecast at +0.6% year on year; 16:00 UK July unemployment; the two-day FOMC meeting begins in Washington.
- Wed 16 Sep: 16:00 UK August CPI; 22:30 US August retail sales from the Census Bureau.
- Thu 17 Sep: 04:00 FOMC decision and projections, with fed funds at 3.50% to 3.75% and IG pricing a 25 basis point hike at about 70%; 04:30 Powell press conference; 08:45 NZ Q2 GDP; 21:00 Bank of England decision, with a hike about 25% priced; 22:30 US housing starts, building permits and jobless claims.
- Fri 18 Sep: 09:30 RBA appearance before the House of Representatives Standing Committee on Economics; 09:30 Japan August CPI; about 13:00 Bank of Japan decision, with a 25 basis point hike to 1.25% about 90% priced; 16:00 UK August retail sales; the S&P/ASX quarterly rebalance takes effect after the close, with SRL.AU, Elsight, Smartgroup, Service Stream and Weebit Nano joining the ASX 200, GQG.AU leaving, and WiseTech and Cochlear dropping out of the ASX 50 for Mineral Resources and NEXTDC.
- Not this week: August labour force lands Thursday 24 September at 11:30, and the RBA decides on 29 September.
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