FX.co ★ Australian Shares Drop on Weak Wall Street Cues

The S&P/ASX 200 Index experienced a 0.6% decline to approximately 8,340 on Thursday, retreating from a three-month high as Australian equities echoed the significant selloff seen in the US markets overnight. US stocks plummeted on Wednesday due to a surge in Treasury yields, spurred by concerns that a new US budget proposal could further amplify the already considerable federal deficit. Domestically, Australia's private sector growth decelerated to a three-month low in May, influenced by a slowdown in services activity, although the manufacturing sector remained stable. Financial stocks were at the forefront of the decline, with Commonwealth Bank, Westpac, and National Australia Bank all falling by around 1.1% to 1.2%. Energy stocks also saw a downturn, impacted by declining oil prices following news that the US and Iran are set to resume nuclear discussions. Major players in the sector, Woodside Energy and Santos, each saw their shares decrease by roughly 1.3%. Losses were also prevalent across technology, consumer, and mining stocks, mirroring a broader risk-averse sentiment permeating the markets.