Sydney, February 6, 2026, 21:47 AEDT — Market closed
- The S&P/ASX 200 dropped 2.03% to 8,708.80, ending a brutal week of losses.
- Web Travel plunged 29.5%, with defensive stocks providing just sporadic support
- Investors shift focus to reporting season as CBA and CSL prepare to report on February 11
Australian shares plunged on Friday, with the S&P/ASX 200 dropping 2.03% to 8,708.80. Web Travel Group took a heavy hit, tumbling 29.52%, and Paladin Energy slid 10.92%. Brambles was one of the few bright spots, edging up 3.48% amid a sparse field of winners. (MarketScreener)
Global markets remained cautious, weighed down by concerns over how fast heavy AI investments will pay off. The painful selloff hitting U.S. tech stocks spilled into Asia, prompting fund managers to reduce their holdings ahead of the weekend. (Reuters)
Every one of the 11 ASX sub-indexes dropped, with resources tumbling 2.7% and banks down 1.2%. Energy, tech, and gold stocks all shed around 3%, according to Reuters data. The S&P/ASX 200 VIX — which tracks expected market volatility — surged 21%, marking its largest single-day jump since August 2024. “Global risk sentiment weakened sharply overnight as investors rotated out of high-multiple and cyclically-exposed sectors,” said Marc Jocum, senior product and investment strategist at Global X ETFs. (Indo Premier)
Rio Tinto made headlines by walking away from takeover talks with Glencore, sending its Australian-listed shares up as much as 2.6%, hitting a record before easing back to a gain around 1%. Andy Forster, senior investment officer at Argo Investments, called it “positive that Rio appears to be disciplined in not overpaying.” Wilson Asset Management’s portfolio manager John Ayoub added the move “reinforces Rio’s disciplined approach to capital management” and urged the company to concentrate on its growth projects. (Reuters)
The Australian dollar slipped to $0.6944 in the Reserve Bank of Australia’s daily exchange rate table, down from $0.6972 the previous day. This dip could ease some pressure on offshore earners, though it mirrors the broader downward mood weighing on global equities. (Reserve Bank of Australia)
Abroad, traders face a gap in the U.S. data schedule: the Labor Department announced the January jobs report will drop next Wednesday, delayed by the partial government shutdown. With that key report missing, focus has shifted to second-tier indicators and cues from central banks. (Reuters)
The road ahead isn’t one-way. Should Wall Street stabilize and commodities halt their drop, bargain hunters could quickly jump in down under. On the flip side, if earnings fall short, Friday’s broad selloff might sharpen into something more targeted and painful.
Next week’s calendar is packed. Commonwealth Bank of Australia and CSL are set to report on Wednesday, February 11, joined by AGL Energy, Computershare, and Evolution Mining. Bigger results follow later in the month, with BHP scheduled for February 17 and Rio Tinto on February 19. (CommSec)
The next local session kicks off Monday, February 9, with one key question: did offshore markets stabilize over the weekend? For Australian desks, all eyes turn to February 11 — a crucial date featuring major bank and healthcare results at home, alongside a delayed U.S. jobs report abroad.
