The news comes just 10 days after the city-wide blockades were lifted and raised concerns about commodity demand in the world’s second-largest economy.
Fortescue fell 5.1 percent to $ 20.47, BHP fell 3 percent to $ 44.87 and Rio Tinto fell 3.5 percent to $ 113.38.
The local technology sector followed a weak Wall Street advantage, as the prospect of rising interest rates weighed even more heavily on growth stocks. Block was one of the biggest lags in the benchmark on Friday morning, down 7.5% to $ 107.55.
Investor sentiment was dampened by the European Central Bank’s decision on Thursday to indicate imminent interest rate hikes along with higher inflation projections and lower growth forecasts.
The ECB said it is likely to raise its benchmark by 25 basis points in July and will consider a larger increase by the end of the year. The news weighed on European stocks, which fell to a two-week low on Thursday.
Wall Street reflected the weakness of European markets, as US stocks fell 2.4%, the worst session in three weeks, led by a 2.8% drop in the highly technological Nasdaq index.
The ECB’s revised growth outlook echoed the World Bank’s and the OECD’s lower forecasts earlier this week, which have rekindled fears of stagnation, a harmful combination of low growth and sharp consumer price increases.
“We are seeing a slowdown in economic growth and high, persistent inflation,” said Geir Lode, head of global equities at Federated Hermes.
“The pandemic-induced supply chain shock and the conflict in Ukraine are beyond the control of the central bank. In this environment, we must be lucky to avoid the stalemate that could last a long time.”