12.08.202600:39:02UTC+00Australian Market Tracks Wall Street Losses

Australian equities fell on Wednesday, with the benchmark index slipping 40 points, or 0.5%, to 9,207 in morning trade. The move erased the previous session’s modest gains, as weakness on Wall Street overnight and stalled negotiations over the Strait of Hormuz drove oil prices higher ahead of key inflation data.

Domestically, the Reserve Bank of Australia left the cash rate unchanged at 4.35% after three increases earlier this year, reiterating that inflation remains uncomfortably high and that inflation expectations are still elevated.

Sector losses were led by technology services, manufacturing, consumer services, and retail, although consumer durables and logistics provided some offsetting support. The four major banks eased between 0.1% and 0.7%. Among individual names, notable decliners included BHP Group (-0.5%), South32 (-2.7%), Computershare (-2.0%), and Bluescope Steel (-1.8%).

Attention now turns to policy signals from the central bank, with Governor Michele Bullock scheduled to testify before parliament on Friday, following an appearance by Assistant Governor Chris Kent on Thursday, as investors continue to assess the outlook amid persistent inflationary pressures.