FX.co ★ Australian Shares Extend Losses at Start of New Week

Australian shares fell 35 points, or 0.4%, to 8,972 in Monday morning trade, posting a second consecutive session of losses as industrials, financials, and transport stocks declined. Sentiment weakened after S&P 500 and Nasdaq futures retreated ahead of key U.S. inflation data and earnings reports from major AI firms due this week. Caution also set in ahead of several releases from Australia’s main trading partner, China, including October CPI and PPI figures later on Monday and trade data on Tuesday.

RBA Deputy Governor Hauser noted that the central bank’s aggressive rate hikes had created cash-flow pressures for mortgage holders and renters, but stressed that letting inflation accelerate unchecked would ultimately cause greater economic damage. Losses on the local market were limited by confirmation of a recovery in Australian building approvals for September.

Among the major names, the four big banks declined between 0.7% and 2.8%, while Scentre Group (-3.9%) and Qantas Airways (-2.1%) recorded steep losses. On the upside, PLS Group climbed 4.2%, Mineral Resources gained 3.9%, and Lynas Rare Earths advanced 2.9%.