The ASX 200 dropped 90 points, or 1.0%, to close at 8,921 on Tuesday, hitting a six-week low as selling pressure broadened across retail, financials, and technology stocks. Risk sentiment deteriorated after Dow futures fell sharply on the back of surging oil prices and rising U.S.–Canada trade tensions.
Further weighing on the market, Reserve Bank Assistant Governor Sarah Hunter cautioned that cash rates may need to rise again to curb persistent inflation. Fresh data also highlighted growing economic headwinds, with Australia’s business confidence slipping to a three-month low in August and business conditions dropping to their weakest level in six years amid softer sales, declining profitability, and easing employment.
Losses were partly offset by stronger August trade figures from China, Australia’s largest trading partner, ahead of a planned meeting in Washington between Presidents Xi and Trump.
Among major stocks, Commonwealth Bank fell 2.2% after signaling slower mortgage growth in the previous month, while the other three big banks declined between 1.7% and 3.2%. REA Group lost 2.9%, and Wesfarmers shed 2.5%. In contrast, energy stocks outperformed, with Santos gaining 1.1%.
