FX.co ★ Aussie Shares Finish at 4-Week Low

The S&P/ASX 200 index fell by 1.8% on Wednesday, closing at a four-week low of 8,739, marking the fourth consecutive session of losses. This decline was largely influenced by stronger-than-expected GDP figures, which reduced the likelihood of further interest rate cuts by the Reserve Bank of Australia. The economy grew by 0.6% in the second quarter, surpassing the anticipated 0.5% increase, and raising the annual growth rate to 1.8%—the highest in nearly two years. This growth was primarily driven by household spending, supported by lower borrowing costs and previous tax reductions. As a result, market expectations shifted slightly, with a preference still for a quarter-point rate cut in November, but a reduction in expectations for more aggressive easing. Additionally, weak performances on Wall Street affected the index, as increasing Treasury yields and uncertainties surrounding tariffs affected investor sentiment. On the corporate side, financial stocks sensitive to interest rates led the declines, dropping 2.7% to their lowest level since August 18. Meanwhile, technology stocks also saw a significant decrease of 3.8%, hitting their lowest point in over three months, following similar trends among U.S. technology stock performance.