Australian Stocks Dive Below 9,000 Amid Rate Hike Fears and Rising Oil Prices

Australian stocks have fallen below 9,000 as concerns about inflation and interest rates grow.

The decline was driven by higher oil prices, which can spill into other costs such as freight and power bills, making it harder to cool inflation.

Traders in overnight index swaps are pricing a decent chance of another Reserve Bank of Australia rate hike at the next meeting, putting pressure on rate-sensitive parts of the market.

Banks and property-linked stocks were hit particularly hard, as higher rates can slow credit growth and squeeze borrowers.

The Australian dollar has also risen to near a four-month high, making it harder for companies that book lots of revenue offshore to convert their foreign income back into Australian dollars.