Australia’s share market is trading lower, tracking a soft Wall Street session after US banks sold off despite many delivering better-than-expected earnings.
The S&P/ASX200 fell 75.3 points by midday, down 0.84 per cent, to 8709.9, as the broader All Ordinaries lost 71 points, or 0.8 per cent, to 8850.5.
The heavyweight financials sector tumbled almost two per cent, wiping the previous session’s gains with interest after Citigroup and Goldman Sachs sold off overnight despite topping their third quarter profit forecasts.
CommBank led the big four banks into the red as chief executive Matt Comyn noted a “demanding environment” at the company’s annual meeting.
“Looking ahead, growth is slowing and inflation remains too high, and it will take time for higher interest rates to bring inflation back into the target range,” Mr Comyn told shareholders in Sydney.
“We also expect more frequent and more volatile international shocks, which Australia has very little control over.”
The energy sector tracked oil prices higher despite a lack of major developments from the Middle East conflict overnight, with Brent crude trading at $US106.60 a barrel.
Woodside and Santos charged higher, while refinery operators and coal producers traded mostly flat.
Uranium stocks were again on the back foot, with Paladin a stand-out, tumbling eight per cent after its September quarter production was severely impacted by a shutdown and pit transition at its Langer Heinrich uranium mine in Namibia.
Non-energy miners were also under pressure, the segment down 0.7 per cent as gold miners continued to drag.
The precious metal eased to $US4,157 ($A5,947) an ounce overnight, while the local sub-index has fallen more than nine per cent since September.
BHP and Rio Tinto shares also lost roughly 0.5 per cent each, as Rio’s third quarter production came in-line with expectations
Real estate trusts outperformed the other sectors, up 0.6 per cent following optimistic commentary from a US Federal Reserve official, who tipped just one more hike in the central bank’s current cycle.
Consumer-facing stocks sold off, with staples down 0.98 per cent and cyclicals losing 0.5 per cent as Coles, Woolworths and Aristocrat sold off.
In company news, Global mining giant Glencore made its ASX debut, inching higher to $11.22 per share, while its expected addition to the S&PASX200 slated for March 2027.
Glencore is already listed on the London Stock Exchange and on the Johannesburg Stock Exchange.
Regis Resources has been placed in a trading halt following a Federal Court decision that could force the federal environment department to overturn a previous declaration on its McPhillamys Gold Project site.
The Australian dollar is buying 69.90 US cents, up from 69.64 US cents on Tuesday at 5pm.
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