FX.co ★ Australia Shares Fall for Third Session to Open Week

Australian shares fell 32 points, or 0.4%, to 8,917 in Monday morning trade, extending losses into a third consecutive session. The decline followed a sharp drop in U.S. equity futures amid renewed geopolitical tensions between Washington and Tehran. On Sunday, President Trump said a U.S. Navy destroyer had disabled and seized an Iranian cargo vessel in the Gulf of Oman, intensifying friction as Iran condemned the continuing U.S. naval blockade as a violation of the ceasefire.

Risk sentiment was further weighed by caution ahead of the monthly lending rate decision in China, Australia’s largest trading partner, due later today, as well as upcoming domestic PMI releases. Persistent concerns over Australia’s inflation outlook also pressured the market.

Sector-wise, energy minerals, non-energy minerals, healthcare, and consumer non-durables led the declines, while gains in process industries and retail trade helped limit broader losses. The big four banks retreated between 0.5% and 3.1%. Other notable laggards included PLS Group (-5.1%), Lynas Rare Earths Ltd. (-2.5%), Woodside Energy (-1.9%), and BHP Group (-1.0%).