Aust shares on track for worst week in 18 months

With a few hours of trading left, the ASX200 was on track to finish the week down 3.1 per cent. which would be its worst weekly loss since a 3.9 per cent drop for the week ending September 2, 2022. 

Overnight the US Labor Department reported that the producer price index, which measures pipeline costs for raw, intermediate and finished goods, rose 0.6 per cent in February, double both the forecast rate and the increase in January.

The US Commerce Department also rebounded less than expected in February, calling into question optimistic predictions that the world's largest economy was on track for a so-called "soft landing."

"It does sort of point to a few different sort of cracks in the US macro picture where you've got consumers potentially slowing down a little bit," said NAB market analyst Kenneth Crompton.

The future market's implied odds that the Fed would cut rates by its June meeting has dropped to 61 per cent, from nearly 75 per cent a week ago. 

Nine of the ASX's 11 sectors were lower at midday,, with property up marginally and energy up 0.9 per cent 

The consumer discretionary and materials sectors were the biggest losers, with both down two per cent.

BHP had dropped 1.5 per cent, Fortescue was 2.4 per cent lower, and Rio Tinto had fallen 2.3 per cent.

Wesfarmers was 1.9 per cent down and Aristocrat Leisure had retreated 3.3 per cent.

All of big retail banks were down significantly, likely in part due to broker downgrades this week.

ANZ had fallen 2.5 per cent, Westpac had dropped 3.3 per cent, CBA was 1.8 per cent lower and NAB was down 1.5 per cent.

Tabcorp was down 5.9 per cent to a two-week low of 72c after the wagering company announced Thursday evening chief executive and managing director Adam Rytenskild would step down after using inappropriate and offensive language in the workplace.

The Australian dollar was buying 65.62 US cents, from 66.15 US cents at Thursday's ASX close.