Australian shares slipped 51 points, or 0.6%, to 8,836 in Wednesday morning trade, erasing earlier gains and marking a one-week low. Risk sentiment deteriorated as U.S. equity futures fell sharply, amid mounting speculation that Democrats could secure control of the House of Representatives and possibly the Senate as polls closed in the U.S. midterm elections.
On the domestic front, conditions across key industries remained weak in October, with both manufacturing activity and construction output contracting. Private-sector output also declined at its fastest pace in seven months, reflecting simultaneous downturns in manufacturing and services. Some of the losses were limited, however, after data indicated a rebound in household spending in September.
Most sectors traded lower, led by logistics, industrials, technology, and financials. The four major banks fell between 0.5% and 1.5%, while mining heavyweights BHP Group (-0.8%) and Rio Tinto (-0.9%) also retreated. Other notable underperformers included Qantas Airways (-2.6%), Reece (-1.5%), and Fortescue (-1.3%).
