The ASX 200 slipped 63 points, or 0.7%, to finish at 8,702 on Thursday, halting its recent advance as U.S. equity futures declined on renewed concerns about further Federal Reserve tightening following last week’s first rate hike since 2023. Domestically, investors assessed the risk of a hawkish stance from the Reserve Bank of Australia at next week’s meeting amid persistently high inflation.
Losses were pared later in the session after fresh labour market data showed the unemployment rate edged up to 4.6% in August, slightly above expectations. RBA Governor Bullock has previously indicated that joblessness in the 4.5%–5.0% range could help contain inflationary pressures.
Sector performance was mixed. Manufacturing, non-energy minerals, and commercial services underperformed, while gains in energy minerals and logistics provided some support. A firmer U.S. dollar and softer copper prices pressured resource names, with BHP and Rio Tinto down 1.8% and 1.2%, respectively. The major banks retreated between 1.0% and 1.9%. Among notable laggards, PLS Group fell 6.1% and HUB24 declined 3.5%.
In contrast, energy stocks outperformed, supported by a rally in Santos, up 2.1%, and Woodside Energy, which gained 1.5%.
