FX.co ★ Australia Stocks Under Pressure

Australian shares dropped 107 points, or 1.2%, to 8,518 in early trade on Tuesday, extending losses to a third consecutive session and hitting their lowest level in nearly three weeks. The decline was broad-based, led by electronic technology, non-energy minerals, utilities, and industrial services. Investors returned from a long weekend to a sharp fall in U.S. equity futures, despite overnight gains on Wall Street as the recent tech sell-off showed signs of easing. Market sentiment was further weighed down by renewed tensions in the Middle East and caution ahead of China’s trade data due later today. On the domestic front, consumer confidence slid 3.5% in June, erasing May’s improvement and marking its fourth decline this year, with persistent inflation pressures remaining the key headwind. Losses were partially offset, however, by a solid trade performance in April, when the balance swung back into surplus on the back of a rebound in exports. Among major stocks, BHP Group (-3.0%), Northern Star Resources (-4.9%), and Evolution Mining (-7.3%) were notable laggards, while the four major banks retreated between 1.6% and 2.4%.