News: CPU Australian shares end lower on hawkish U.S Fed narrative

	  Financial, healthcare stocks lead losses 

	  U.S. Treasury yields continue to rise 

	  Global risk sentiment on edge  

(Updates to close)

Australian shares fell on Friday, as losses in healthcare and financials outweighed strong performances by resource firms, while risk sentiment was dampened on the likelihood of a prolonged aggressive policy stance by the U.S. Federal Reserve.

The S&P/ASX 200 index (xjo) closed 0.8% lower at 6,676.8 points, marking its second weekly loss. The benchmark closed 1% lower on Thursday.

Global risk appetite remained tepid as comments from a Fed official reiterated the U.S. central bank's motive to sustain its aggressive rate-hike path to curb runaway inflation, even if it induces a recession.

Riskier assets in the recent past have faced pressure from a stronger U.S dollar and Treasury yields as both are considered safe-haven bets in times of economic uncertainty.

"The fact that U.S. yields continued marching higher yesterday and have extended those gains today is a clear sign that the markets know the Fed means business regarding rate hikes," said Matt Simpson, a senior market analyst from City Index.

Analysts believe any recovery in the local market could be short-lived due to a rising interest rate scenario.

"We may see a percent or two gain on certain days, and the next day that gain will disappear. Sustainable recovery is unlikely in the near future," said Kunal Sawnhey, chief executive officer at Kalkine Group.

Australian financials .AXFJ , which occupy one-third of the bourse, led the losses for the day with a 1.2% drop. The "Big Four" banks slipped between 0.9% and 1.7%.

Healthcare stocks .AXHJ suffered a similar fate, falling nearly 1%, with index leader CSL (CSL) skidding about 1.5%.

The resources sector provided some respite, with the energy index .AXEJ jumping the most at 2%. Sector majors Woodside Energy (WDS) and Santos (STO) rose 2.4% and 0.8%, respectively.

Similarly, the gold index .AXGD advanced 0.4%, with Newcrest Mining (NCM) and Northern Star Resources (NST) gaining 0.4% and 0.6%, respectively.

New Zealand's benchmark S&P/NZX 50 index (nz50) fell about 0.5% to finish at 10,782.4 points.