The Australian sharemarket finished lower on Thursday as sentiment turned cautious following overnight losses on Wall Street.
The S&P/ASX 200 Index declined by 38.1 points, or 0.5%, to finish at 8,348.7, retreating from three-month highs and erasing gains from the previous session.
Losses were broad-based, with nine of the 11 sectors ending in negative territory. Technology and real estate companies led the declines.
Xero, WiseTech Global, and TechnologyOne closed 1%, 2.3%, and 2.4% lower, respectively.
Property names such as Mirvac, Goodman Group, Charter Hall, and Stockland also finished in the red.
Wall Street’s overnight selloff was driven by renewed pressure on the bond market, triggered by a recent Moody’s downgrade and concerns surrounding U.S. President Donald Trump’s proposed tax and spending package.
Meanwhile, gold prices extended their rally for a fourth consecutive day, surpassing US$3,300 an ounce as investors sought safe-haven assets.
Gold miners were pushed higher as a result, with Northern Star Resources up 5.4%, Evolution Mining adding 2.2%, and Newmont climbing 2.3%.
The banking sector saw significant profit-taking, with Commonwealth Bank of Australia slipping 1.3%, pulling back from an all-time intraday high reached on Wednesday after the Reserve Bank’s cut interest rates by 25 basis points.
In corporate news, Wesfarmers dropped 1.2% after warning of larger-than-expected losses in its lithium division. The company revised down production guidance at its Mount Holland project, prompting investor concern.
Zip Co plunged 6.5% following a warning from Swedish fintech peer Klarna that an increasing number of customers are struggling to repay buy now, pay later (BNPL) loans.
Battery material producer Novonix gained 2.3% after the U.S. Commerce Department issued a preliminary ruling to impose duties on graphite imports from China - positive news for U.S.-based manufacturers.
In local bond markets, yields fell with the 10-year and 2-year Australian government bond rates down 0.3% and 1.4% to 4.473% and 3.424%, respectively.
