The Australian sharemarket ended lower on Wednesday, as investors tracked developments in Washington, where the United States government entered its first shutdown since 2018.
Attention remained fixed on U.S. President Donald Trump, who has threatened to cut federal programs and dismiss workers.
Markets are also concerned that the shutdown could delay key economic data releases, such as Friday's nonfarm payrolls release, used by the Federal Reserve to shape its interest-rate outlook.
The S&P/ASX 200 Index closed down just 3.10 points or 0.04% to 8,845.7, with five of the 11 sectors in the red.
Consumer discretionary stocks led declines, with Domino’s Pizza down 1.7%, Wesfarmers falling 1.3%, Tabcorp down 0.5% and Aristocrat Leisure slipping 0.6%.
Materials stocks also retreated, dragged down by BHP, which fell 2.5% after reports suggested China had temporarily banned imports of its Pilbara iron ore as part of annual pricing negotiations.
Rio Tinto managed a 0.5% gain, while Fortescue Metals added 1.4%.
Lithium producers were heavily sold off after Chinese regulators reportedly approved reserve reports from two large operators in Yichun, a key mining hub.
Pilbara Minerals slumped 6.4%, Mineral Resources lost 3.8%, and Liontown Resources tumbled 10.7%.
Gold extended its rally, touching a new record at US$3,875.53 an ounce, surpassing Tuesday’s peak as investors sought safety amid political deadlock in the U.S.
Westgold Resources jumped 10.7% after announcing plans to increase annual gold output from 326,000 ounces in FY25 to more than 470,000 ounces by FY28.
Defence technology firm DroneShield soared another 23.2%, extending its weekly gains to 53.9%.
Southern Cross Media fell 6.2% after its board said it was confident of defeating a proposal to limit share issuance without shareholder approval.
Activist investor Sandon Capital, which owns 11.3% of Southern Cross, has pushed for a constitutional change following the group’s plan to issue nearly 100% of its shares to acquire Kerry Stokes’ Seven West Media, which closed flat.
Elsewhere, Bravura Solutions surged 18.2% after upgrading its FY26 earnings guidance, while shipbuilder Austal rose 5.8% after reaching an agreement with the U.S. Navy over its towing, salvage and rescue vessel program currently under construction in Alabama.
On the bond markets, yields were mixed. The 10-year Treasury yield rose 0.2% to 4.344%, while the 2-year yield slipped 0.2% to 3.53%.
