FX.co ★ Australia Shares Set for 2nd Straight Weekly Losses

Australian equities edged lower around midday on Friday, with the benchmark index hovering near 9,071 after a modest gain in the previous session, and on track for a second consecutive weekly decline. Sentiment was hit by a sharp overnight sell-off on Wall Street as long-dated U.S. Treasury yields resumed their climb, with government efforts to curb the recent bond market rout failing to dispel investor concerns over inflation.

On the domestic front, private-sector activity softened in August, with the flash Composite PMI retreating from July’s six-month high amid weaker manufacturing output. Investors also adopted a cautious stance ahead of next week’s July inflation data. In addition, employment unexpectedly declined in July, pushing the unemployment rate to a three-month high.

Sector performance was mixed: technology, healthcare, and commercial services weighed on the market, while gains in energy minerals, utilities, and communications helped limit losses. Among individual names, notable declines included Charter Hall (-6.3%), Pro Medicus (-3.3%), Wisetech Global (-2.9%), and Lynas Rare Earths (-2.2%).