ASX 200 Ends Subdued

The ASX 200 closed nearly flat at 8,728 on Wednesday, as gains in utilities, healthcare, and industrial services were offset by declines in tech, transport, and financials. The muted tone followed three sessions of advances, with U.S. stock futures softening after Wall Street hit fresh records Tuesday on a tech rally. Locally, September data showed Australia's industry activity slumping, with firms citing tighter access to finance and persistent cost pressures amid renewed fuel-driven inflation. Mining giant BHP Group slipped 0.7% after agreeing to sell its Kambalda nickel concentrator and related assets to Gold Fields, with completion slated for 2027. The move follows BHP’s suspension of broader WA nickel operations in 2024 due to oversupply. Three of the four major banks lost between 0.8% and 1.3%. On the upside, Evolution Mining rose 2.5%, Northern Star Resources gained 1.9%, PLS Group added 1.8%, and Lynas Rare Earths advanced 1.6%.

Australian shares were little changed, hovering around 8,731 in early deals on Wednesday after gaining in the prior three sessions. Retail trade, industrial services, and consumer durables provided modest support, but weakness in tech and financials kept the index flat. Traders digested September industry updates showing a sharp drop in construction output and further weakness in manufacturing, while awaiting August building permit figures later today and October inflation expectations in coming days. U.S. futures were subdued after Wall Street closed at fresh record highs overnight, buoyed by easing Treasury yields and optimism around AI-driven earnings. China’s markets remain shut and will reopen Thursday. Among local movers, Northern Star Resources jumped 3.4%, Evolution Mining rose 2.0%, Capricorn Metals gained 2.6%, and Perseus Mining added 2.3%. Meanwhile, three of the four big banks slipped between 0.3% and 0.8%, BHP fell 0.7%, and Rio Tinto dropped 0.6%.

The ASX 200 advanced 49 points or 0.6% to close at 8,736 on Tuesday, marking a third straight gain as stronger U.S. stock futures offset pressure from rising Treasury yields. Traders also digested fresh U.S. economic data while awaiting minutes from the Fed’s September meeting. Locally, sentiment was lifted by Australia's job ads rising for a fifth month last month, underscoring resilient labour demand despite the RBA’s rate hikes. However, the upside was limited by consumer confidence falling for a second month in October, reflecting higher fuel and borrowing costs. Commercial services, healthcare, and financials led the advance, with heavyweight BHP Group up 1.5%, while Rio Tinto added 1.4%. In the meantime, the big four banks added between 0.1% and 0.9%. In contrast, Codan Ltd. fell 4.7%, while tech lagged with Wisetech Global down 2.9%, Nextdc off 2.5%, and Technology One slipping 1.9%. Investors now look to September industry updates and final August building permits.