ASX 200 Closes at 6-week Low

Australia’s ASX 200 eased 0.1% to end at 8,911 on Wednesday, extending prior weakness to a six-week low as caution lingered after oil neared USD 100 and global inflation worries deepened. Locally, business mood fell to a three-month low in August while consumer sentiment sank in September. Meanwhile, regional markets dipped after reports that Iran escalated tensions, firing missiles at a U.S. base in Jordan and attacking ships in the Strait of Hormuz. In top trading partner China, headline inflation accelerated as expected in August while producer prices rose more than estimated. Healthcare, financials, and commercial services weighed on the index. CSL dipped 2.0% after cutting FY26 guidance and warning of slowing plasma demand and rising generic competition. The big four banks lost 0.4–2.2%. Strength in non-energy minerals, energy, and industrial services capped losses, with Woodside and Santos up 2.7% and 1.8%. Miners also gained amid solid rises in BHP (2.8%) and Rio Tinto 2.3%.

Australian shares steadied on Wednesday morning, hovering near 8,910 after Tuesday’s sharp drop to a six-week low. Bargain hunting in non-energy minerals, energy stocks, and tech helped offset weakness in healthcare, commercial services, and financials. Sentiment remained fragile as oil prices surged and global inflation worries deepened, with local business confidence slipping to a three-month low in August and consumer sentiment sliding in September. Meanwhile, U.S. futures weakened after Wall Street’s overnight losses, driven by escalating Middle East tensions following attacks on Saudi energy facilities. On the trade front, China logged robust exports and imports in August, with trade surplus topping USD 800 billion so far this year. Miners led gains, with BHP up 2.2%, while Woodside Energy rose 2.3% and Santos added 1.4%. In contrast, three of the four big banks eased between 0.1% and 1%. Traders now await CPI and PPI data from main trading partner China later today.

The ASX 200 slumped 90 points, or 1.0%, to close at 8,921 on Tuesday, marking a six-week low as weakness spread across retail trade, financials, and tech. Sentiment soured after Dow futures tumbled on surging oil prices and escalating U.S.–Canada trade tensions. Adding pressure, Reserve Bank's Assistant Governor Sarah Hunter warned cash rates may need to rise further to rein in sticky inflation. Meanwhile, fresh data showed Australia’s business mood fell to a three-month low in August, while business conditions slid to a six-year trough amid weaker sales, profitability, and employment. Losses were cushioned by stronger August trade flows in top trading partner China, ahead of a scheduled meeting between Presidents Xi and Trump in Washington. Commonwealth Bank fell 2.2% after flagging softer mortgage growth last month, while the other three big banks dipped between 1.7% and 3.2%. REA Group (-2.9%) and Wesfarmers (-2.5%) also lagged. Energy names bucked the trend, with Santos up 1.1%.