FX.co ★ ASX 200 Hits 3-Week Low Ahead of GDP

The S&P/ASX 200 index declined by 0.5% to fall below 8,860 on Wednesday, extending its losing streak to four days and reaching its lowest point in three weeks. This downturn reflects a cautious market sentiment ahead of the release of Australia's GDP figures for the second quarter. Economists predict a quarter-on-quarter economic expansion of 0.5% for the June quarter, up from 0.2% in the first quarter, with an annual growth rate forecasted at 1.6%, compared to the previous 1.3%. These figures are expected to indicate only modest progress, causing investors to remain wary of the economic momentum amid challenging global conditions. The local equities market faced additional pressure from weak cues on Wall Street and rising bond yields. Domestically, mixed economic indicators revealed varying trends: while services activity soared to a three-year high in August, achieving its fastest growth rate since April 2022, the manufacturing and broader industry sectors continued to contract significantly, according to Ai Group surveys. On the corporate front, significant losses were recorded in major banking and real estate stocks, whereas technology shares fell by over 2%, mirroring the performance of their counterparts in the US.