Australia Shares Set for 2nd Straight Weekly Losses

The ASX 200 lost 56 points, or 0.6%, to close at 8,728 on Wednesday, reversing recent gains as financials, consumer durables, and transport weighed. Traders turned cautious ahead of the upcoming labor data, after August unemployment hit 4.6%, the highest since late 2021. Meanwhile, Australia’s leading index slipped 0.1% in September, its first decline since May, due to higher fuel costs and rising borrowing rates. Still, losses were partly offset by firmer U.S.stock futures ahead of a key inflation report amid elevated oil prices. In top trading partner China, September CPI was slightly below forecasts, but producer prices rose more than expected. Meanwhile, Chinese exports and imports hit record highs, driving a solid trade surplus. The big four banks fell between 0.9% and 2.3%, while BHP (-0.9%) and Rio Tinto (-0.3%) also lagged. Other laggards included Genesis Minerals (-3.9%), Evolution Mining (-2.9%), and Qantas Airways (-2.2%).

Australian shares dipped 70 points, or 0.8%, to 8,714 in Wednesday morning trade, extending weakness from the prior session. Sentiment weakened after Wall Street closed mostly lower overnight, with earnings from major banks and pressure on memory chip stocks weighing, alongside softer oil prices and persistent Middle East tensions. Locally, caution grew ahead of September labor market data, while minutes from the RBA’s September meeting signaled further hikes remained possible as flagged upside risks materialised. In main trading partner China, CPI/PPI and trade data are due later today. Financials, healthcare, consumer stocks, and services dragged, partly offset by gains in tech and energy minerals. Rio Tinto slipped 0.4% after steady copper output in Q3, with strong Oyu Tolgoi performance offsetting declines elsewhere. The four big banks fell sharply, down 1.4%–2.4%. Other notable laggards included Pro Medicus (-3.4%), Genesis Minerals (-2.5%), and Aristocrat Leisure (-1.9%).

The ASX 200 ended flat at 8,784 on Tuesday after two sessions of gains, as strength in energy minerals, consumer services, and financials was offset by weakness in tech, consumer non-durables, and industrials. Traders digested data showing Australia's business mood fell to a four-month low in September, marking the 7th straight negative reading amid oil volatility as Middle East tensions persisted. Minutes from the RBA’s September meeting signaled further hikes remained possible, with some upside risks flagged in August materialising. Futures tied to the S&P 500 and Nasdaq slipped ahead of bank earnings, Fed officials' remarks, and key inflation reports. The big four banks rallied 1.3%–2.3%, while AGL Energy jumped 4.1% and Ampol Ltd. rose 1.6%. On the downside, heavyweight BHP fell 1.8%, along with Fortescue (-2.9%), South32 (-3.6%), and Pro Medicus (-1.6%). Qantas slid 2.9% after ending its domestic codeshare with Air NZ, with the partnership set to scale back from April 7, 2027.