The S&P/ASX 200 Index (ASX: XJO) is under sustained pressure again on Thursday, with the market unable to break a run of persistent selling.
At the time of writing, the ASX 200 is down 0.35% to 8,656 points.
That extends the current slide to 8 straight sessions, marking one of the longest losing streaks in years.
The market just keeps edging lower, and there is not much buying coming through to push it back up.
After more than a week of declines, attention is turning to where support might start to come through.
Here's what is sitting behind the latest weakness.
Image source: Getty Images
Oil surge adds pressure to the market
A key driver right now is the rapid move in oil prices.
Brent crude has pushed above US$120 a barrel, hitting multi-year highs as geopolitical tensions in the Middle East escalate.
Reports suggest the United States is weighing further military options, while disruption around the Strait of Hormuz continues to tighten supply.
And this is feeding directly into inflation concerns.
Higher energy prices tend to flow through quickly into transport, manufacturing, and household costs. That makes things more difficult for central banks, particularly at a time when interest rates are already starting to climb.
Which is evidently showing up on the ASX, where buyers have been holding back instead of stepping in on the dips.
Local weakness building across key sectors
Looking at how the market is tracking beneath the surface, the weakness is starting to show up across most sectors.
Resource stocks are under pressure, with major miners BHP Group Ltd (ASX: BHP) down 1.98% to $53.86 and Rio Tinto Ltd (ASX: RIO) also drifting 1.98% lower to $167.42.
Consumer-facing names have also been hit, with Woolworths Group Ltd (ASX: WOW) sinking 7.54% to $34.48 and Coles Group Ltd (ASX: COL) falling 3.97% to $22.03, following recent updates that flagged margin pressure.
The S&P/ASX 200 Healthcare Index (ASX: XHJ) is another drag, down around 3.17%, while parts of the S&P/ASX 200 Financials Index (ASX: XFJ) are holding up slightly better, up about 0.51%.
Foolish Takeaway
It is hard to ignore 8 straight losses, even if none of the daily moves has been that large.
To me, this feels like the market just cannot find a reason to bounce right now.
Oil prices are still pushing higher, and that is keeping pressure on sentiment.
I am not in a rush to step in here. But until buyers start showing up again, I believe this could keep drifting lower.
