FX.co ★ Australia Shares Fall Again as July Opens

Australian equities slipped 26 points, or 0.3%, to 8,751 on the first trading day of the new month, extending losses into a second session as retail trade, commercial services, manufacturing, and utilities dragged on the market. Sentiment remained cautious at the outset of the new financial year after the Reserve Bank’s June minutes highlighted that inflation is still well above the 2–3% target band and that underlying price pressures intensified in Q2, leaving room for further policy tightening following three rate hikes earlier this year.

Industry conditions stayed deeply contractionary in June, despite a marginal improvement from May, with elevated costs and persistent uncertainty weighing on activity. External factors also pressured local shares, as softer U.S. futures followed Wall Street’s strongest quarter in six years, while volatility in semiconductor stocks and geopolitical tensions stemming from the conflict in the Middle East further dampened risk appetite.

The big four banks declined between 0.6% and 1.7%. Among notable movers, Coles Group slumped 6.7%, Greatland Resources lost 4.7%, Whitehaven Coal fell 2.8%, and Ampol slipped 1.1%.