Australian Shares Follow Wall Street Lower

The ASX 200 fell 38 points, or 0.4%, to finish at 8,793 on Thursday, erasing modest gains in the previous session as U.S. stock futures weakened sharply amid higher oil prices and mounting concerns about AI investment. Caution also emerged ahead of Australia’s flash October PMI data due Friday. Meanwhile, Reserve Bank Deputy Governor Hauser said inflation remains more persistent than expected, with September headline CPI at 4%, reinforcing expectations of another rate hike in November. Consumer discretionary, mining, and energy stocks led declines, while gains in logistics, transport, and utilities helped limit losses. Fortescue slipped 4.5% after flagging its future cash balance and operations could face headwinds if ongoing talks with China's state-backed iron ore buyer drag beyond the end of the year. Codan Ltd. plunged 8.1% after an off-market block trade worth AUD 312 million, reportedly involving the sale of roughly 23% of the stake held by its largest individual shareholder.

Australian stocks fell 49 points or 0.6% to 8,783 in early Thursday trade, reversing modest gains the day before following a weak Wall Street lead amid a broad selloff in AI and chip-related shares. Traders also turned cautious after RBA Deputy Governor Andrew Hauser warned inflation remains more persistent than expected, with September headline CPI at 4% strengthening expectations of another rate hike at the November board meeting. Losses in energy, consumer durables, and tech outweighed gains in logistics, transport and healthcare. Three of the four major banks slipped 0.4% to 0.7%, while Woodside Energy (-3.7%), Wesfarmers (-2.2%) and Aristocrat Leisure (-1.2%) also fell. In contrast, Nextdc Ltd. climbed 6.4%, rebounding from its sharpest decline in nearly nine years after the company reduced its FY2027 guidance. Attention now turns to Australia’s flash October PMI data and comments from RBA Governor Bullock on Friday before parliament.

Australia's ASX 200 added 0.2% to close at 8,831 on Wednesday, reversing a modest drop in the prior session as U.S. equity futures firmed despite persistent concerns over AI spending. Transport, commercial services, and communication stocks drove the gains, offsetting weakness in logistics, industrial services, and consumer sectors. Four major banks rose between 0.2% and 1.4%, while tech names also gained, led by Xero (3.8%) and Wisetech Global (2.4%). In contrast, Nextdc plunged 40.6%, its steepest drop in nearly nine years, after sharply lowering its FY2027 guidance following delays in securing power network connections. Woodside Energy slipped 0.3% after trimming its 2026 production outlook despite reporting stronger-than-expected Q3 revenue. Mining giants BHP Group and Rio Tinto fell 1.7% and 1.8%, respectively. Traders now await Australia’s flash October PMI data due Friday and comments from Reserve Bank Governor Michele Bullock scheduled to appear before lawmakers on that day.