Australian shares were little changed around midday on Wednesday, stabilising after a sharp decline in the previous session. Gains in energy minerals, consumer durables, and utilities were largely offset by weakness in healthcare, technology, and consumer non-durables.
Overnight on Wall Street, U.S. equities closed lower as oil prices surged, U.S. Treasury yields pushed above 5%—their highest level since 2007—and investors positioned for an anticipated Federal Reserve rate hike later today.
Locally, markets have been trending lower since last week, touching their weakest levels since early July amid persistent inflation pressures and expectations of a prolonged tightening cycle by the Reserve Bank. The four major banks were broadly subdued, while PLS Group (-2.9%), Suncorp (-2.6%), and Insurance Australia (-1.8%) underperformed. In contrast, energy stocks advanced, with Woodside Energy up 3.6% and Santos Ltd. gaining 2.5%.
Traders are now focused on upcoming remarks from Governor Bullock, who is scheduled to appear before Parliament on Friday.
