ASX 200 Slips Further as Fed Minutes Loom

The ASX 200 lost 27 points or 0.3% to close at 8,804 on Tuesday, marking the second straight session of losses as weaker futures for S&P 500 and Nasdaq set a cautious tone ahead of the Federal Reserve’s June meeting minutes. Nerves also persisted before key June CPI and PPI readings from top trading partner China later this week. Locally, elevated borrowing costs, a cooling housing market, and geopolitical uncertainty weighed on Australia's economy, highlighted by a slight drop in June job ads. Major laggards included non-energy minerals, consumer non-durables, logistics, and energy minerals, partly offset by gains in tech services, healthcare, and financials. Gold stocks tumbled 4.3%, as bullion retreated. Northern Star Resources, Australia's largest listed gold miner, dipped 5.1%. Miners lost 2.9%, with iron ore mining giant Rio Tinto down 1.8%. In contrast, WiseTech Global jumped 5.7% after naming a new chair. Meanwhile, the four big banks advanced between 0.9% and 1.6%.

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.