Australian shares fell 41 points, or 0.5%, to 8,680 in early trade on Thursday, extending their losing streak to a third consecutive session and hitting their lowest level in nearly three weeks. The decline followed a weak start to July on Wall Street overnight, where investors pared back positions in chipmakers, dampening global risk sentiment.
Locally, caution increased ahead of May trade figures due later in the day, after April data showed exports outpacing imports and producing a modest surplus. Adding to the cautious tone, building approvals for May dropped by more than expected. At the same time, industry conditions remained deeply in contraction territory in June, despite a slight improvement, as higher costs and ongoing uncertainty continued to weigh on activity.
Sector performance was mixed. Logistics, retail, energy minerals, and manufacturing led the declines, while gains in consumer services, healthcare, and technology services helped limit broader market losses. Among major stocks, BHP Group slipped 1.4%, Wesfarmers dropped 3.1%, Goodman Group fell 2.1%, Woodside Energy lost 1.8%, and Santos declined 2.0%. In contrast, three of the four major banks advanced.
