ASX 200 Dips 1% at Finish

The ASX 200 fell 90 points, or 1.0%, to close at 9,038 on Thursday, extending prior losses as concerns mounted that the Reserve Bank of Australia could tighten monetary policy as soon as next month after a hotter-than-expected inflation print. Meanwhile, three of the four major banks now anticipate another hike later this year following three increases already in 2026. Losses were broad, led by retail trade, consumer stocks, non-energy minerals, and financials. Still, sentiment was limited by a surge in U.S. futures after Nvidia's blowout earnings, with Q2 revenue more than doubling and beating forecasts by the widest margin in two years. Locally, household spending rose more than expected in July, up for a third straight month. Heavyweights BHP Group and Rio Tinto slipped 1.5% and 0.5%, respectively. Westfarmers tumbled 4.6% as warnings of squeezed household budgets overshadowed stronger annual profit. In contrast, Qantas Airways jumped 4.8% after issuing upbeat revenue guidance.

Australian shares slipped 36 points or 0.4% to 9,093 in Thursday’s morning trade, extending losses after Wall Street weakened overnight as hotter-than-expected U.S. PCE inflation lifted yields and kept investors cautious ahead of Nvidia’s earnings. Geopolitical tensions added pressure, with renewed Gaza strikes and tanker attacks in Hormuz fueling oil volatility and inflation concerns. Locally, July headline inflation topped forecasts on fuel and travel costs, while core inflation also surprised higher, raising the risk of another RBA hike. Sector moves were mixed: tech services, non-energy minerals, and retail trade dragged, while health services, industries, and manufacturing lent support. Notable laggards included Sigma Healthcare (-4.9%), Wisetech Global (-4.8%), and Xero Ltd. (-2.0%). Heavyweight BHP eased 0.9% and the big four banks traded mixed. Traders now await domestic releases later today, including July household spending and Q2 private capital expenditure.

The ASX 200 fell 37 points, or 0.4%, to end at 9,128 on Wednesday, reversing early gains and marking the first drop in three sessions. Sentiment weakened as U.S. futures were mostly lower ahead of the PCE inflation report later today and Fed Chair Warsh’s Jackson Hole speech Friday. Locally, July headline inflation in Australia rose above forecasts on fuel and travel costs, with core inflation also surprisingly higher, raising the risk of another rate hike. Meanwhile, construction work fell 2.1% qoq in Q2, defying expectations for growth. Tech, communications, and energy minerals drove the losses, though strength in non-energy minerals and retail trade capped the decline. Lynas Rare Earths tumbled 3.9% after missing profit estimates, while two of the big four banks fell between 0.1% and 1.1%. In contrast, Evolution Mining rose 0.4% on stronger gold prices. Woolworths surged 3.7% after reporting a profit jump and signaling that shoppers will hunt bargains amid tighter household budgets.