Australia Shares Subdued

The ASX 200 added 24 points, or 0.3%, to close at 8,697 on Wednesday, reversing the prior session’s losses as strength in consumer durables, energy minerals, and non-energy minerals lifted sentiment. Firmer U.S. stock futures provided support ahead of the Fed’s policy decision, while traders monitored elevated oil prices and geopolitical tensions. Bargain hunting also emerged after local markets slipped to a near ten-week low amid sticky inflation and prospects of another Reserve Bank rate hike later this month. In China, Australia's top trading partner, August data showed mixed signals, fueling hopes of fresh stimulus from Beijing. Heavyweight BHP Group rose 1.3%, and Rio Tinto gained 0.8%. Energy names advanced, with Woodside Energy up 2.9%, Santos 2.3%, and Ampol 2.6%. The big four banks were mixed, with NAB and Commonwealth Bank lower, while Westpac and ANZ were little changed. Investors now await Governor Bullock’s testimony before Parliament on Friday for further policy cues.

Australian stocks were flat around midday on Wednesday, reversing a notable drop in the prior session as gains in energy minerals, consumer durables, and utilities were offset by losses in healthcare, tech, and consumer non-durables. Overnight on Wall Street, U.S. stocks ended lower amid surging oil prices, U.S. Treasury yields breaching 5%, the highest since 2007, and expectations of a Federal Reserve rate hike later today. Local markets have been in a downtrend since last week, touching their lowest level since early July amid persistent inflationary pressure and expectations of prolonged Reserve Bank tightening. The four big banks were muted, while PLS Group (-2.9%), Suncorp (-2.6%), and Insurance Australia (-1.8%) lagged. Meanwhile, energy stocks jumped, lifting Woodside Energy (3.6%) and Santos Ltd. (2.5%). Traders now brace for comments from Governor Bullock, who is scheduled to appear before Parliament on Friday.

The ASX 200 lost 77 points, or 0.9%, to finish at 8,673 on Tuesday, extending last week’s slide and hitting its lowest since early July. Sentiment soured as U.S. stock futures dipped and the 10-year Treasury yield surged to a 2007 high around 5% ahead of the Fed’s policy meeting, with markets leaning toward a 25bp hike. Locally, traders priced in an 85% chance the Reserve Bank of Australia will lift rates later this month, with Governor Bullock set to testify that further tightening may be needed to tame inflation. In main trading partner China, August data showed mixed signals, with retail sales slowing and unemployment ticking up, though industrial output improved. Losses were broad, led by healthcare, non-energy minerals, and financials, but consumer sectors offered some support. The big four banks slid 0.4%–1.6%, while Macquarie (-2.8%) and BHP Group (-2.4%) also lagged. Gold miners dropped as bullion fell, with Northern Star Resources down 2.4% and Evolution Mining off 3.4%.