FX.co ★ Australian Equities Slip Further, Weekly Trend Still Negative

Australian shares fell 47 points, or 0.5%, to 8,655 in Friday morning trade, extending losses as U.S. equity futures weakened following a volatile session on Wall Street. Overnight, U.S. markets were pressured by rising Treasury yields and sharp swings in oil prices.

Local sentiment remained cautious ahead of next week’s policy decision, with stubbornly high inflation reinforcing expectations of another interest rate hike after three increases earlier this year. August labour market data gave a mixed signal: the unemployment rate rose to 4.6%, its highest level in nearly five years, yet overall employment growth exceeded forecasts.

Declines were broad-based across sectors, led by technology, non-energy minerals, logistics, and industrials. Notable underperformers included Xero Ltd. (-2.9%), Greatland Resources (-2.5%), REA Group (-2.2%), and Aristocrat Leisure (-2.1%). In contrast, the four major banks posted modest gains, rising between 0.2% and 0.4%.

For the week, the index is on track for a fourth consecutive decline, down about 0.9% so far. Investors are now looking to the upcoming summit between U.S. President Donald Trump and China’s President Xi Jinping for further policy signals and direction.