Australian Shares Dip as Banks and Miners Weigh on Market

Australian shares edged lower on Wednesday, as declines in the banking and mining sectors offset gains in gold and energy stocks. The S&P/ASX 200 index dropped 0.3% to 8,710.00 by 0028 GMT, following a 0.6% rise the previous day. The downturn was influenced by a Westpac-Melbourne Institute survey, which revealed a second consecutive month of declining consumer sentiment in October. The survey highlighted the impact of higher borrowing costs from the Reserve Bank of Australia's tightening, which has strained household finances and worsened cost-of-living challenges.

Tapas Strickland, chief market strategist at Moomoo Australia and New Zealand, noted the challenging macro environment, with oil prices above US$100 and long-end yields near multi-decade highs. He emphasized that Australian investors are watching whether global momentum can expand before household financial pressures affect corporate earnings. Currently, markets predict a 75.7% likelihood that the RBA will keep interest rates unchanged in November, with a 24.3% chance of another hike.

Banks fell 0.3% after a three-day winning streak, with all four major banks trading in negative territory. Miners also saw slight declines, with BHP Group and Rio Tinto each down 0.5%. In contrast, gold stocks surged 1.9%, marking their best day in a week, supported by rising bullion prices. Evolution Mining and Northern Star Resources led the gains, rising 1.6% and 2.4%, respectively. Energy stocks climbed 0.2%, with Woodside Energy and Santos each up 0.5%. Tech stocks gained 0.3%, boosted by Wall Street’s record high close overnight, while healthcare stocks rose 0.5% and real estate firms remained flat.

Meanwhile, New Zealand’s benchmark S&P/NZX 50 index held steady at 13,708.07. Attention now shifts to the minutes from the RBA’s last meeting, scheduled for release next week, as investors seek further policy insights.