Australian shares have dipped following a sharp sell-off in the major banks, after disappointing earnings from their US counterparts highlighted the challenging backdrop for financial institutions.
The S&P/ASX200 fell 56 points on Wednesday, down 0.64 per cent, to 8727.9, as the broader All Ordinaries dropped 52.5 points, or 0.59 per cent, to 8869.
The heavyweight financials sector tumbled 1.6 per cent as the big four banks sold off, after US bank earnings failed to impress investors and a shareholder address from CommBank boss Matt Comyn noted a host of local and international economic headwinds.
Miners also sold off, with gold prices still under pressure from elevated bond yields and as iron ore futures continued to linger at two-year lows.
The Australian dollar is buying 70.02 US cents, up from 69.77 US cents on Tuesday, the greenback easing after a Federal Reserve official tempered fears around the US interest rate outlook.
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