FX.co ★ Australian Shares Little Changed

The S&P/ASX 200 index remained relatively stable at approximately 8,470 during Wednesday morning trading, following a 1.9% decline on Tuesday. This stability was attributed to the gains in mining stocks, which counteracted the losses in the financial sector. The mining sub-index rose by nearly 1%, buoyed by strong iron ore prices due to continued robust demand from China, the leading consumer of metals. Notably, major mining companies BHP and Lynas Rare Earths saw increases of 0.9% and 2.9% respectively. Gold mining companies also experienced a surge, rising by 2.6%, while energy stocks gained 0.7% in response to rising oil prices. Conversely, financial stocks, which are sensitive to changes in interest rates, hit a six-month low, with Commonwealth Bank leading the decline at a 0.8% drop. Market sentiment was subdued as diminishing expectations for further easing by the Reserve Bank of Australia pressured the main index, against a backdrop of steady interest rates, robust employment figures, and ongoing high inflation. Technology shares also faced setbacks, hitting their lowest point since mid-April, as accounting software company Xero decreased by 0.5%. This sector mirrored the selloff on Wall Street, fueled by renewed concerns about overvaluation and skepticism surrounding the sustainability of the artificial intelligence-driven rally.