FX.co ★ Australian Stocks Trade Notably Lower

Australian shares fell 70 points, or 0.8%, to 8,714 in Wednesday morning trade, extending the previous session’s decline. Sentiment weakened after Wall Street ended mostly lower overnight, as earnings from major US banks and renewed pressure on memory chip stocks weighed on markets, alongside softer oil prices and ongoing tensions in the Middle East.

Locally, investors grew more cautious ahead of the September labour market data, while minutes from the RBA’s September meeting indicated that further interest rate hikes remain possible as previously flagged upside risks materialise. In China, Australia’s key trading partner, CPI/PPI and trade figures are due later today, adding another source of uncertainty.

Sector performance was mixed, with financials, healthcare, consumer-related stocks and services leading the declines, partially offset by gains in technology and energy minerals. Rio Tinto eased 0.4% after reporting broadly steady copper production in the third quarter, with strong output from Oyu Tolgoi offsetting weaker performance at other operations. The four major banks fell sharply, losing between 1.4% and 2.4%. Among other notable underperformers were Pro Medicus (-3.4%), Genesis Minerals (-2.5%) and Aristocrat Leisure (-1.9%).