Australia Equities Extend Losses

Australian shares slipped for a second session Tuesday, with the ASX 200 easing 40 points, or 0.4%, to 8,791 in Tuesday morning deals. Losses were broad-based across non-energy minerals, electronic tech, energy, and consumer names, as investors remained cautious ahead of key June CPI and PPI prints from top trading partner China later this week. Domestically, labour demand softened in June, reflected in a slight dip in job ads, weighed by high borrowing costs, a cooling housing market, and geopolitical uncertainty. Still, declines were offset by a further easing in the Melbourne Institute’s inflation gauge, even as the Reserve Bank signals underlying pressures may firm in the June quarter. On Wall Street, futures were mixed after Monday’s gains extended positive momentum from last week. Among local laggards, Evolution Mining fell 3.2%, followed by Northern Star Resources (-2.9%), Brambles Ltd. (-2.3%), and Woodside Energy (-1.0%). Meanwhile, two of the big four banks edged lower.

The ASX 200 fell 13 points, or 0.2%, to end at 8,831 on Monday, retreating from a one-week high and swinging from the prior session’s rally. Sentiment weakened after Australia's job ads eased for a third time this year in June, underscoring the drag from higher borrowing costs. Caution also emerged ahead of June CPI and PPI data from main trading partner China, due later this week. Still, stronger U.S. stock futures helped limit losses ahead of the Fed’s June meeting minutes. Meanwhile, a softer inflation gauge from the Melbourne Institute added to signs of cooling cost pressures. Industrial services, consumer names, and non-energy minerals led declines. The big four banks shed between 0.1% and 1.1%. Supermarket majors Woolworths (-1.1%) and Coles (-0.4%) lagged, with the sector down 1.6% so far in July after a 13% surge in June. In contrast, Vault Minerals jumped 11.6% after Genesis Minerals launched an AUD 5.6 billion takeover bid, topping Regis Resources’ May proposal.

Australian equities slipped in early Monday trade, easing 20 points or 0.2% to 8,825 and unwinding part of the prior session’s rally. The retreat pulled the market back from a one-week high as investors booked profits and turned cautious ahead of fresh job ads data and the June inflation gauge due later today. In top trading partner China, June CPI and PPI figures are expected later this week, with May showing steady headline inflation but faster producer price gains. Concerns over further cash rate hikes also resurfaced, underscored by the Reserve Bank’s June minutes and Governor Michele Bullock’s recent remarks. Still, a modest rise in U.S. equity futures capped the weakness following a strong week on Wall Street that drove the Dow Jones to record highs. Industrial services, consumer durables, and manufacturing drove the decline in local markets. The four major banks lost between 0.3% and 0.9%, while Genesis Minerals (-6.7%), Suncorp (-3.5%), and Greatland Resources (-2.6%) fell.