(Bloomberg) -- Australian stocks were on track for the worst week since June 2022 on concerns that the central bank may further raise rates.

The S&P/ASX 200 Index dropped 4% this week, trailing the regional benchmark, weighed by banks and miners. Domestic equities also remained under pressure due to external factors including the Fed’s higher-for-longer mantra.

“Australian stocks are grappling with headwinds from nearly all directions: a hawkish Fed, an uncertain RBA, a slowing Chinese economy, and a mess-filled domestic business landscape,” said Hebe Chen, an analyst at IG Markets Ltd. 

©2023 Bloomberg L.P.