Australian equities dropped 81 points, or 0.9%, to 8,648 in Tuesday morning trade, extending losses for a second consecutive session. The pullback came as renewed uncertainty over U.S.–Iran peace talks sparked a sharp decline in U.S. futures. Sentiment was also pressured by investor caution ahead of key domestic data releases: April building approvals and first-quarter business inventories and gross operating profits are due later today, with GDP and trade figures to follow in the coming days.
Adding to the cautious mood, data from Australia’s largest trading partner, China, signaled a loss of momentum. A private survey showed manufacturing growth slowing in May, while official figures pointed to stagnation, highlighting ongoing external headwinds linked to the Middle East conflict.
Losses were broad-based across sectors, with process industries, logistics, retail, and financials among the main underperformers. The big four banks fell between 1.7% and 1.9%. Other notable decliners included Scentre Group (-5.3%), GPT Group (-3.5%), Qantas Airways (-2.4%), and Medibank Private (-1.8%).
