FX.co ★ Australian Stocks Follow Wall Street Lower

Australian shares fell 79 points, or 0.9%, to 8,574 in early trade on Thursday, erasing the previous session’s rebound as U.S. futures weakened following Wall Street’s sharp slide on Wednesday amid renewed inflation concerns and rising tensions in the Middle East. Domestically, signs of a cooling economy intensified after Westpac reported that average monthly mortgage applications have dropped about 18% since late 2025, highlighting heightened uncertainty and impending tax changes. At the same time, Australia’s business sentiment improved in May but remained deeply negative, reflecting ongoing worries about the impact of elevated borrowing costs. Losses were partly offset by expectations that the Reserve Bank may pause its cash rate hikes next week after three increases so far this year. Most sectors declined, led by non-energy minerals, logistics, process industries, and financials. Lynas Rare Earths sank 3.6%, while Northern Star Resources fell 3.0% and Evolution Mining lost 2.5%. Mining heavyweight BHP Group dipped 1%, and the four major banks retreated between 0.9% and 1.8%.