Australian shares are set to extend losses, with ASX 200 futures down 37 points or 0.41% at 8:30 am AEST. The benchmark closed 27 points lower at 8,900 on Tuesday, its third consecutive decline, weighed down by consumer and property stocks.
The Consumer Discretionary sector led losses with a 1.89% fall, followed by Consumer Staples (-1.66%) and Real Estate (-1.26%). In contrast, Financials (+0.42%) and Information Technology (+0.36%) outperformed, while Materials was broadly flat.
The index dipped as much as 36 points in early trade to 8,891.2, slipping below 8,900 for the first time in nearly two weeks. Losses were amplified by several large companies trading ex-dividend, with Santos, Wesfarmers and Woolworths collectively removing around 15 points from the index.
Healthcare under pressure
Investors continue to exit healthcare stocks, which have slumped 14% since CSL’s recent results. CSL fell 1.04% to A$208.37, its lowest since mid-2019. Telix Pharma tumbled 3.96% to A$14.31 after the US Food and Drug Administration rejected its TLX250-CDx application over production issues. Pro Medicus fell 1.43% to A$294.67 and Ramsay Health Care slipped 1.30% to A$34.08.
Financials provide stability
Banking stocks offered some offset. National Australia Bank rose 0.99% to A$42.96, Commonwealth Bank gained 0.89% to A$170.46 and Westpac lifted 0.84% to A$38.57. ANZ edged 0.27% lower to A$33.48, while Bendigo Bank dropped 3.78% to A$12.72 as it also went ex-dividend.
Gold stocks shine
Gold miners advanced after bullion surged to a fresh record of US$3,508 an ounce. Resolute Mining rose 3.62% to A$0.715, Perseus Mining gained 2.24% to A$4.11, Regis Resources climbed 1.47% to A$4.84 and Evolution Mining added 0.77% to A$9.17.
Other notable movers
Polynovo jumped 10.27% to A$1.45, buoyed by expectations of US Medicare reimbursement reform. Collins Foods gained 6.99% to A$10.26 after reporting stronger-than-expected sales in the first 18 weeks of FY26, driven by demand at its KFC outlets.
Economic outlook
Focus now turns to the Australian June-quarter GDP release. Economists expect a 0.5% quarter-on-quarter rise, taking annual growth to 1.6% from 1.3%, in line with Reserve Bank of Australia forecasts. Such figures would reinforce the case for further monetary easing, with growth still well below the 2.5-3% potential pace. Futures markets imply a 25-basis-point rate cut at the RBA’s 4 November meeting and 32 basis points of easing by December.
United States
Wall Street opened September lower as investors weighed trade uncertainty, higher bond yields and questions over Federal Reserve independence. A recent court ruling cast doubt on President Trump’s legal authority to impose “reciprocal” tariffs, though duties remain in place pending a Supreme Court review.
Concerns are mounting over the politicisation of the Fed, with Trump reshaping the Federal Open Market Committee in favour of deeper rate cuts. While this supports expectations for lower short-term rates, it risks undermining confidence in US assets, pushing long-end yields higher and strengthening the case for gold and Bitcoin.
Google shares rose 6.66% in after-hours trade to US$211.99 after a court rejected a Department of Justice bid to force the sale of Chrome and Android, instead ordering data-sharing remedies.
Europe
European markets fell to a one-month low on Tuesday as rising bond yields heightened fiscal concerns. Germany’s 30-year yields reached their highest since 2011, while French yields hit levels last seen in 2009, amid uncertainty over Prime Minister François Bayrou’s minority government ahead of a confidence vote on 8 September.
The pan-European FTSEurofirst 300 lost 1.4%, with interest rate-sensitive real estate stocks down 3.6%. In London, the FTSE 100 shed 0.9%. Eurozone inflation rose 2.1% in August, broadly in line with European Central Bank expectations.
Weak currencies
Currencies weakened against the US dollar in both European and US trade. The euro slipped from US$1.1706 to US$1.1611 before recovering slightly to trade near US$1.1640 at the US close. The Australian dollar eased from US65.43 cents to US64.82 cents, ending near US65.20 cents. The Japanese yen moved from 147.88 per US dollar to JPY148.90 and was around JPY148.30 by the close.
Oil stronger
Oil prices strengthened on Tuesday following the US move to impose sanctions on Iran’s oil revenue and ahead of Sunday’s OPEC+ meeting, where analysts anticipate no reversal of current voluntary cuts. Brent crude gained US99 cents, or 1.5%, to US$69.14 a barrel, while US Nymex crude rose US$1.58, or 2.5%, to US$65.59 a barrel.
Mixed metals, but gold shines
Base metals traded mixed. Copper futures advanced 1.1% on the back of a weaker US dollar and positive Chinese economic indicators, while aluminium futures were little changed.
Gold surged to a record high, with futures settling US$76.10 higher, or 2.2%, at US$3,592.20 an ounce. The move reflected investor expectations of a US Federal Reserve rate cut alongside political and economic uncertainty. Spot gold traded near US$3,533 at the US close.
Iron ore futures added US72 cents, or 0.7%, to US$102.53 a tonne, supported by expectations of improved demand following the conclusion of China’s military parade.