Australia's S&P/ASX 200 dropped 34.2 points, or 0.39%, to 8,714.5 on Friday, weighed down by a sharp selloff in lithium stocks and a strengthening U.S. dollar following hawkish signals from new Federal Reserve Chair Kevin Warsh.

A Difficult Week for Australian Equities

Friday's decline extends a rough stretch for the ASX 200, which has fallen in four of the past five sessions. On Thursday, the S&P/ASX 200 Index had a poor session and dropped deep into the red, with the benchmark index falling 0.7% to 8,748.7 points.

Lithium Stocks Lead Friday's Declines

The most significant sector-specific pressure on Friday came from a sharp pullback in lithium-related names. Lithium stocks continued to sell off as Chinese lithium carbonate futures are down 6.3% in early trade to 145,320 yuan a tonne, and now down almost 10% in the past week.

A Stronger Dollar Weighs on Sentiment

Beyond the lithium-specific weakness, a broader shift in currency markets has also pressured Australian shares. A raft of major investment banks have flipped positive on the greenback after new Fed Chair Kevin Warsh pledged to restore price stability, reviving rate-hike bets. The Bloomberg Dollar Spot Index has risen 2.1% in June, near its highest since November and up 1.7% year to date, one of its best months in a year. Wall Street turns dollar bullish as Warsh's hawkish Fed revives the U.S. exceptionalism trade, putting renewed pressure on commodity-linked currencies like the Australian dollar.

Judo Capital Remains Under Intense Pressure

One of the week's most dramatic individual stock stories has continued playing out, with the small-business lender facing a further round of scrutiny. Analysts slashed Judo's target price following the company's recent earnings downgrade, with the company providing further details on lending, provisioning, and outlook during a market briefing Friday. That follows an extraordinary plunge earlier in the week. Judo Capital plunged 39% after cutting its 2026 earnings outlook, with........

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