Australian shares struggled for momentum on Friday as gains in miners and financials countered losses in tech and gold stocks, while investors remained on edge about the US fiscal outlook after Fitch cut the government’s credit rating on Tuesday.

The S&P/ASX 200 index was flat at 7,312.80, as of 0041 GMT, after a two-session slide.

It has declined about 1.1% so far in the week after three straight weeks of gains.

Markets have been on a defensive mode after ratings agency Fitch downgraded the US government’s top credit rating in a move that drew an angry response from the White House and renewed investor worries about global economic growth.

Meanwhile, Australian retail sales volumes fell again in the June quarter as cost-of-living pressures and rising borrowing costs ate into consumer spending power, data showed on Thursday.

Australian shares fall as mining, financials weigh

In Sydney, mining stocks advanced 0.8%, with sector majors BHP Group and Rio Tinto up 1.2% and 1.1%, respectively.

Financial stocks climbed 0.5%, with the so called “big four” banks gaining between 0.3% and 0.7%.

Technology stocks tracked their Wall Street peers lower and were last down 1.1%. Australia-listed shares of Block dropped 11.1%, while Xero Ltd fell 1.1%.

Gold stocks fell 0.7% on weak bullion prices, with Northern Star Resources and Newcrest Mining down 1.1% and 0.1%, respectively.

Energy stocks gained about 1.3% after oil prices surged overnight on Saudi Arabia and Russia’s pledge to cut output through next month.

Shares of Woodside Energy and Santos Ltd advanced 1.5% and 0.6%, respectively.

In corporate news, Australia’s competition regulator denied authorisation for ANZ Group Holdings to proceed with its proposed A$4.9 billion ($3.21 billion) acquisition of Suncorp Group’s banking arm.

Shares of ANZ Group gained 0.9%, while Suncorp Group fell 1.6%.

New Zealand’s benchmark S&P/NZX 50 index was largely unchanged at 11,942.41.