FX.co ★ Australian Shares Track Wall Street Lower

The S&P/ASX 200 experienced a slight decline of 0.2%, closing at 8,958 on Monday. This decrease reversed the previous week's gains as it mirrored Wall Street’s decline from last Friday. The downturn was prompted by renewed concerns about persistent inflation in the United States, highlighted by the Core PCE index—a preferred inflation measure by the Federal Reserve—rising 2.9% year-over-year in July. This increase was in line with predictions but represented the fastest growth rate since February. Meanwhile, domestically, Australia’s manufacturing sector continued to demonstrate strength. The Manufacturing PMI rose to 53 in August 2025, up from 51.3 in July, marking its highest level in nearly three years and the eighth consecutive month above the expansion-indicating 50-point threshold. Notably, major mining companies performed poorly, with Fortescue plummeting 4.6%, Rio Tinto losing 1.1%, and BHP Group declining 1%. Additionally, energy stocks are anticipated to face challenges due to decreasing oil prices, with Woodside Energy Group already dropping 1.1%.