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Highlights
Australian shares start Thursday in the red after overnight global cues
Xero leads losses on market backlash to major US software deal
Broader tech and financial stocks drag despite strength in select energy names
Australian shares declined during early trade on Thursday, with the ASX 200 index dipping amid a mixed global lead and sector-specific drag. Wall Street's uneven overnight session offered little clarity, and domestic sentiment turned negative following sharp moves in heavyweight tech and financial names.
The Australian market opened lower as futures had signalled a soft start, influenced by a combination of international geopolitical tensions and caution around corporate earnings. Traders appeared to factor in overnight volatility from global indices and shifting sentiment around US economic resilience.
Xero Declines Sharply on Market Reaction to US Expansion Plan
Xero Ltd (ASX:XRO) posted one of the most significant losses in the opening session after announcing a large-scale acquisition deal involving American invoicing and accounting platform Melio Payments. The move sparked debate among market participants over the timing and scale of the decision, pushing sentiment toward cautious territory.
The reaction reflected broader concerns about overseas technology bets, especially when set against a backdrop of recent global tech valuations and shifting rate expectations. The pullback in Xero added downward pressure on the information technology segment of the ASX 100.
Financial and Digital Infrastructure Stocks Follow Broader Trend
Financial services names including Credit Corp Group (ASX:CCP) also trended lower during the morning session, contributing to the index-wide softening. Sentiment remained cautious across the credit segment as participants responded to signals of tightening conditions across global lending environments.
Among digital infrastructure firms, Life360 Inc (ASX:360) and DigiCo Infrastructure Trust (ASX:DCG) registered moderate losses, following a pattern of volatility seen across technology-oriented entities in recent weeks.
Energy Sector Mixed Despite Takeover Activity in Focus
The broader energy segment saw early divergence as Santos Ltd (ASX:STO) extended gains on ongoing market attention surrounding the proposed Abu Dhabi-led takeover offer. However, rival names including Woodside Energy Group (ASX:WDS), Ampol Ltd (ASX:ALD), Beach Energy Ltd (ASX:BPT), and Karoon Energy Ltd (ASX:KAR) gave up early momentum.
Movements across the energy names were partly influenced by global oil price shifts and speculative recalibrations following the high-profile bid targeting Santos. The stock’s continued rally helped cushion the index’s downside to an extent during morning trade.
Mixed Global Cues Offer No Clear Direction for Domestic Market
The local market’s cautious tone reflected the broader mood across global bourses, where major indexes such as the Dow Jones and Germany’s DAX delivered divergent results. US markets showed resilience in sectors like semiconductors, yet uncertainty lingered around trade policy developments and fiscal outlooks.
