ASX 200 utilities shares led the market sectors for a third consecutive week but only on very small gains.
Utilities shares rose 0.14% over the five trading days, while the other sectors spent the week in the red.
It was a tough week of trading, starting with a horror day on Monday. The ASX 200 dove 1.81%, or 140 points, due to fears of a delay in the first US interest rate cut because of sticky services inflation.
Then on Friday, we saw a dramatic afternoon dip in the ASX 200 following Israel's strike on Iran.
The benchmark index tumbled to a two-month low of 7,492.6 points in the hours after the news broke and several ASX 200 shares struck new 52-week lows.
Overall, the S&P/ASX 200 Index (ASX: XJO) lost 2.43% over the week to finish at 7,567.3 points on Friday.
Western nations are very concerned about Iran becoming involved in the conflict between Israel and Gaza. Not only would this escalate the conflict, likely causing further loss of life and additional destabilisation of the Middle East, but it would also likely impact oil supplies and, thus, oil prices.
AMP chief economist Dr Shane Oliver explains how Iran's involvement could impact oil prices:
This would threaten Iran's 3% of world oil production and the flow of oil through the Strait of Hormuz (through which roughly 20 million barrels a day or 20% of world oil production flows mainly enroute to Asia).
Another sharp spike in oil prices would be a threat to the economic outlook as it could boost inflation again and risk adding to inflation expectations, potentially resulting in higher than otherwise interest rates and act as a tax hike on consumers, leaving less to spend on other things.
Also in the news this week, direct share ownership in Australia reached a record high of $1.4 trillion.
Utilities shares led the ASX sectors last week
AGL Energy Limited (ASX: AGL) was this week's best-performing major ASX 200 utilities stock.
AGL shares rose 2.51% over the five trading days to close at $9.20 on Friday.
Origin Energy Ltd (ASX: ORG) shares gained 0.41% to finish at $9.76.
Meanwhile, ASX property shares took a beating last week.
Strong inflation and jobs data from the US have prompted many analysts to revise their predictions on the timing of the first interest rate cut.
ASX 200 property stocks and real estate investment trusts (REITs) are among the most rate-sensitive of the market sectors, so this is why they struggled last week.
Among the biggest players in the sector, Goodman Group (ASX: GMG) shares fell 4.6% last week to close at $30.49 on Friday. Stockland Corporation Ltd (ASX: SGP) shares lost 3.84% to $4.38 per share.
Some investors fear a delayed US interest rate cut may influence central banks in other Western nations, like Australia.
However, CBA has retained its prediction of a September rate cut in Australia and ANZ is still tipping November.
ASX 200 market sector snapshot
Here's how the 11 market sectors stacked up last week, according to CommSec data.
Over the five trading days:
| S&P/ASX 200 market sector | Change last week |
| Utilities (ASX: XUJ) | 0.14% |
| Consumer Staples (ASX: XSJ) | (1.79%) |
| Energy (ASX: XEJ) | (2.07%) |
| Materials (ASX: XMJ) | (2.17%) |
| Industrials (ASX: XNJ) | (2.94%) |
| Communication (ASX: XTJ) | (2.97%) |
| Financials (ASX: XFJ) | (3.09%) |
| Consumer Discretionary (ASX: XDJ) | (3.15%) |
| Information Technology (ASX: XIJ) | (3.23%) |
| Healthcare (ASX: XHJ) | (3.77%) |
| A-REIT (ASX: XPJ) | (3.8%) |
