The Australian sharemarket finished lower on Wednesday as weakness in energy and defensive stocks offset gains among gold miners, with investors digesting mixed United States labour market data and another sharp fall in oil prices.
The S&P/ASX 200 index closed down 13.70 points, or 0.2%, at 8,585.2, with 10 of the 11 sectors ending the session in the red. Losses were led by health care and energy stocks.
Overnight, Wall Street had a mixed session after U.S. data showed the unemployment rate edging higher to 4.6% from 4.4%, a reading that did little to strengthen expectations for further interest rate cuts by the Federal Reserve.
On the local market, health care stocks led declines, with CSL, Fisher & Paykel Healthcare, ResMed and Pro Medicus all falling by more than 2%.
The energy sector also came under heavy pressure as crude oil prices traded near their lowest levels in almost five years overnight.
Investors also continued to weigh the prospect of a potential deal to end the war in Ukraine, which could lead to fewer restrictions on Russian oil exports and add to already ample global supply.
Woodside Energy fell 2.4%, while Santos slipped 1.2% after announcing a conditional sale to divest its 42.86% operated interest in the Mahalo joint venture in Queensland’s Bowen Basin to Comet Ridge.
Hopes of an end to the Ukraine conflict also weighed on defence-related stocks. DroneShield plunged 12.1% as investors took profits following a rally of more than 20% over Monday and Tuesday, while shipbuilder Austal tumbled 11.5%.
Meanwhile, gold miners lifted as spot prices held at seven-week highs. Newmont added 1.2%, Northern Star closed 3.8% higher, and Evolution Mining gained 4.5%.
Consumer staples were weaker after Treasury Wine Estates dropped 9.3% after cutting its earnings outlook.
GrainCorp slumped 15.4% after agreeing to sell its interest in GrainsConnect Canada, a move expected to result in a loss of between $5 million and $10 million. The company also warned of a weaker-than-expected East Coast harvest.
Elsewhere, IperionX fell 3% after the company said its titanium production and manufacturing operations at its Virginia campus in the United States had achieved ISO 9001 certification.
On the bond markets, Australian yields moved higher, with the 10-year and 2-year rates rising 0.8% and 0.7% to 4.754% and 4.042%, respectively.
