Australian Stock Extend Slide, Notch 1-Month Trough

Australian shares slumped 118 points or 1.3% to 8,950 in early Wednesday trade, marking a third straight session of decline and the lowest level in a month. Overnight losses on Wall Street pressured sentiment, with surging bond yields and higher oil prices stoked inflation and rate-hike fears. Locally, caution mounted ahead of Q2 GDP data due later today, with growth expected to stay sluggish after last quarter’s weakest pace in a year. Meanwhile, July trade figures are also due Thursday following June’s export surge and subdued imports. Losses were broad, led by commercial services, non-energy minerals, healthcare, and consumer stocks. Heavyweights BHP Group (-2.8%) and Rio Tinto (-1.3%) dragged, alongside Northern Star Resources (-4.7%), Evolution Mining (-4.2%), and Pro Medicus (-3.6%). Meanwhile, the big four banks eased modestly. Energy names bucked the trend, with Woodside Energy up 2.0% and Santos climbing 1.3%, helping cap the overall decline.

The ASX 200 edged lower to close at 9,067 on Tuesday, marking a second straight decline as weakness in retail trade, tech, and commercial services weighed. Sentiment stayed cautious ahead of Australia's Q2 GDP data due Wednesday, with growth expected to remain sluggish after the weakest pace in a year last quarter. Meanwhile, fresh figures showed a record current account deficit of AUD 27.2 billion in Q2, though the shortfall came in below forecasts. Still, losses were partly offset by a private survey indicating factory activity in main trading partner China accelerated in July, with output, new orders, and foreign sales all rising. Meanwhile, U.S. stock futures inched higher after Wall Street’s Monday retreat, still managing monthly gains. The four big banks eased slightly, while REA Group (-4.3%), Westfarmers (-3.2%), and Woolworths (-2.7%) also dragged. Energy names outperformed, with Woodside Energy up 1.1% and Santos jumping 1.8%.

Australian stocks slipped 40 points, or 0.4%, to 9,040 on Tuesday morning, the first trading day of September, extending prior losses after Wall Street closed lower overnight as rising oil prices and U.S.–Iran clashes pushed Treasury yields toward 4.7%, weighing on equities. Locally, caution also lingered ahead of Q2 GDP data due Wednesday, with growth expected to remain sluggish after the weakest pace in a year last quarter. Several releases are slated today, including July flash building permits, Q2 current account, and August commodity prices, while China’s private manufacturing PMI will follow later. Losses were led by retail trade, commercial services, and transport, though gains in energy minerals and consumer durables helped cap the decline. Three of the four big banks eased modestly, while notable laggards included REA Group (-4.4%), Westfarmers Ltd. (-3.2%), Woolworths (-2.5%), and Fortescue (-2.2%). In contrast, Woodside Energy rose 1.1%, and Santos gained 1.5%.