Australian Shares Sink Amid Economic Concerns and Higher Interest Rates

Australian shares closed the week slightly lower due to ongoing economic concerns and an increasingly stringent global interest rate environment.

The S&P/ASX200 index dipped by 1.2 points, or 0.01 percent, settling at 8731.2, while the broader All Ordinaries index managed a gain of 12 points, or 0.13 percent, finishing at 8922.9.

Diana Mousina, AMP Deputy Chief Economist, attributed the decline to the Reserve Bank of Australia's (RBA) more aggressive policies compared to the Federal Reserve and a crumbling economic landscape.

The mining sector showed resilience, with raw materials surging by 1.4 percent due to rebounding copper prices and a nearly 4 percent increase in gold prices pushing it to $US4393 ($6196) an ounce.