Miners hit highest level since June 12
Johns Lyng group surge on takeover deal
AXJO loses 0.3% for the week
Updates to close
By Rajasik Mukherjee
July 11 (Reuters) - Australian shares ended flat on Friday but posted a weekly loss, as U.S. President Donald Trump's latest tariff threats kept investors cautious, while rare earth miners rallied after a major deal in the United States boosted sector optimism.
The S&P/ASX 200 index ended the day 0.1% lower at 8,580.1, losing about 0.3% for the week, with the benchmark a few points shy of its all-time high scaled last month.
Trump's latest tariff have rattled investor confidence, particularly for Australia, which already faces a 200% tariff on , one of its largest exports.
"There is a lot of caution about being over-exposed to equities when Trump could do or say anything," said Luke Winchester, portfolio manager at Merewether Capital.
Financials were the top drag on the benchmark, losing 0.5%. Three of the "Big Four" banks dropped, while ANZ Group traded flat.
Winchester said the lenders were under pressure as the Reserve Bank of Australia's this week led to a repricing of equities.
Healthcare slipped 0.3%, with biotech giant CSL Ltd falling 0.6%. Tech dropped 1% to its lowest since late May, while discretionary consumer stocks lost 0.8%.
The mining sub-index was the only sector trading in green, gaining around 2% to hit its highest since June 12. It gained 0.8% for the week, logging its third consecutive week of gains.
Iron ore mining giants BHP Group and Rio Tinto added 2.9% and 2.4%, respectively.
Rare earth miners surged, led by Lynas 17%, on hopes that a between the U.S. government and MP Materials to boost rare earths magnets will lift prices for the sector.
Johns Lyng to its highest since mid-February after agreeing to a takeover deal that values the building services provider at A$1.1 billion ($723.69 million).
New Zealand's benchmark S&P/NZX 50 index lost 0.6% to close at 12,686.68.
($1 = 1.5200 Australian dollars)
(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Vijay Kishore)
((Rajasik.Mukherjee@thomsonreuters.com [Rajasik.Mukherjee@thomsonreuters.com]))
For more information on DIARIES & DATA: U.S. earnings diary Wall Street Week Ahead Global Economy Week Ahead . For latest top breaking news across all markets
