The Australian sharemarket extended losses on Wednesday, weighed down by sharp declines in mining and technology stocks as investors grappled with renewed inflation concerns and an overnight tech selloff on Wall Street.
Traders continued to pare back bets on further interest rate cuts this cycle after Reserve Bank of Australia Governor Michele Bullock cautioned on Tuesday that inflationary pressures may be more persistent than previously thought.
The benchmark S&P/ASX 200 Index finished 11.7 points or 0.1% lower at 8,802.0, marking its lowest level in five weeks. Six of the 11 sectors posted gains.
Technology stocks led the declines, tracking a broad sell-off on Wall Street where high-growth names were hit by renewed concerns that valuations had outpaced fundamentals.
TechnologyOne dipped 2.1%, Xero lost 0.9%, WiseTech Global slipped 1.4%, NextDC shed 4.9%, and Codan retreated 4.1%.
The materials sector also weighed on the benchmark, with iron ore futures extending their recent slide. Investor sentiment soured after reports suggested that China’s Simandou iron ore project in Guinea - the world’s largest untapped deposit - could eventually disrupt global supply dynamics and pressure prices.
Major miners BHP, Rio Tinto, and Fortescue Metals declined 0.5%, 1.2%, and 2.5%, respectively.
Gold miners also struggled as bullion prices slipped below US$3,945 per ounce overnight.
Northern Star Resources and Evolution Mining lost 0.5% apiece, St Barbara shed 7.7%, and Newmont fell 0.6%
The A-REIT sector lagged, with Mirvac down 0.4%, and Stockland trading 0.5% lower.
Goodman Group shed 3.4% despite reaffirming its FY26 operating earnings per share growth target of 9% following a solid September quarter.
The company said demand for data centres and logistics facilities remained robust, with development activity expected to accelerate in the second half.
Meanwhile, Tyro Payments fell 0.9% after announcing the appointment of Nigel Lee as its new chief executive following an extensive global search to replace Jon Davey.
Nanosonics lost 2.9% after unveiling plans for an on-market share buyback of up to $20 million for the current fiscal year.
On the bond markets, yields on 10-year and 2-year Australian government bonds were relatively steady at 4.321% and 3.579%, respectively.
