Australian shares fell 36 points, or 0.4%, to 9,093 in Thursday morning trade, extending the previous session’s weakness after Wall Street retreated overnight. Stronger‑than‑expected U.S. PCE inflation pushed bond yields higher and kept investors cautious ahead of Nvidia’s earnings release. Geopolitical tensions added to the risk-off tone, with renewed strikes in Gaza and tanker attacks in the Strait of Hormuz driving oil price volatility and stoking fresh inflation concerns.
On the domestic front, July headline inflation exceeded forecasts, driven by higher fuel and travel costs, while core inflation also surprised to the upside, reinforcing the prospect of another RBA rate hike. Sector performance was mixed: technology services, non‑energy minerals, and retail trade underperformed, whereas health services, industrials, and manufacturing provided some support.
Among notable decliners, Sigma Healthcare fell 4.9%, Wisetech Global dropped 4.8%, and Xero Ltd eased 2.0%. Heavyweight BHP slipped 0.9%, and the major banks traded mixed. Investors are now focused on key local data due later today, including July household spending figures and Q2 private capital expenditure.
