The ASX 200 fell 52 points, or 0.6%, on Wednesday to close at a one-week low of 8,834. The index reversed earlier gains after a sharp decline in U.S. stock futures reignited worries that Democrats could secure full control of Congress in the 2026 U.S. midterm elections. Sentiment was further weighed by caution ahead of Australia’s September trade figures due Thursday, following an August reading that showed the trade surplus narrowing to a three-month low as imports outpaced exports.
Adding to the downbeat mood, Reserve Bank Governor Bullock warned that elevated oil prices, persistent inflation, and slowing economic growth are likely to keep household finances under pressure over the coming year. Losses were broad-based, led by technology, logistics, and manufacturing stocks.
Two of the four major banks retreated after the central bank raised the cash rate for the fifth time this year, lifting it to an 18-year high. Among heavyweights, BHP Group (-2.9%) and Rio Tinto (-2.3%) recorded notable declines. Other major laggards included REA Group (-3.6%), Goodman Group (-3.2%), and Fortescue (-2.3%).