Australian Stocks Poised for First Monthly Drop in 6 Months

Australian shares edged up 17 points or 0.2% to 8,726 in Wednesday’s morning trade, marking a third straight gain as consumer durables, tech, and commercial services lifted sentiment. Support also came from stronger U.S. equity futures after New York Fed President John Williams’ remarks eased concerns over further rate hikes. Locally, the Reserve Bank reaffirmed its readiness to respond to economic shifts, stressing its dual focus on price stability and full employment. Heavyweights BHP Group and Rio Tinto added 0.8% and 0.4%, respectively, while Northern Star Resources surged 6.1%, Evolution Mining rose 1.7%, and Goodman Group gained 1.3%. Despite the recent rebound, the market remains on track for its first monthly decline in six months, down about 3.9% so far, pressured by persistent inflation and the drag from higher borrowing costs. Traders now await August inflation data due later today, alongside trade figures scheduled in the coming days.

The ASX 200 rose 30 points, or 0.3%, to 8,709 on Tuesday, extending prior gains amid strength in consumer durables, tech, and manufacturing. Sentiment was supported by the Reserve Bank of Australia’s assurance that monetary policy remains well placed to respond to economic developments, with the board reaffirming its focus on price stability and full employment. At its September meeting, the central bank lifted the cash rate to a 15-year high of 4.6% in its fourth hike this year, as expected. Traders now await key domestic releases later this week, including August inflation, trade, and private sector credit, while bracing for September PMI readings in top trading partner China. On fresh data, household spending was flat in August, ending three months of growth. BHP Group gained 0.6%, and Rio Tinto added 0.4%, while South32 (2.9%) and Wisetech Global (2.8%) also advanced. However, the big four banks fell 0.3% to 0.9%, and energy majors Woodside (-1.1%) and Santos Ltd. (-1.0%) lagged.

Australian equities were almost flat in Tuesday morning deals, hovering near 8,674 after modest gains in the previous session. Strength in consumer durables, tech, and manufacturing was offset by weakness in commercial services, utilities, and energy minerals. Traders awaited August household spending data later today following three straight monthly increases, while inflation figures loom in the coming days. On the monetary front, the Reserve Bank is set to deliver a policy decision this afternoon, with markets bracing for another hike after three increases this year as inflation stays sticky. On Wall Street, stocks closed lower overnight as surging U.S. Treasury yields and geopolitical tensions drove volatility alongside higher oil prices. Among local movers, Codan Ltd. surged 16.4%, South32 gained 2.6%, and Nextdc rose 1.2%. On the downside, Greatland Resources fell 2.3%, Cochlear dropped 2.0%, and Regis Resources eased 1.2%.