AUS
NZ
UK
CA
USA
IND
Highlights
- S&P/ASX 200 Falls 0.5%: Australian stocks slip after reaching an all-time high, with losses in financial and real estate sectors.
- Australia’s GDP Growth Misses Expectations: The country’s GDP grew by just 0.3% in Q3, underperforming the forecasted 0.4%.
- Commodity Stocks Provide Cushion: Strong performance in mining and gold stocks helped mitigate broader market losses.
Australian shares saw a decline on Wednesday, following a record high the day before, as financial and real estate stocks weighed heavily on the market. The S&P/ASX 200 index fell 0.5% to 8,454 points by early morning trade, despite having gained 0.6% on Tuesday.
The market was also influenced by disappointing economic data. Australia’s economy grew at a slower pace than anticipated in the third quarter, with real GDP rising by just 0.3%, falling short of the expected 0.4%. On an annual basis, growth slowed to 0.8%, down from 1.0% in the previous quarter, marking levels that are typically seen during economic downturns.
Financial and Real Estate Stocks Lead the Decline
The financial sector took a hit, with the major banks contributing to the losses. National Australia Bank (ASX:NAB) dropped 1%, while both Commonwealth Bank of Australia (ASX:CBA) and ANZ Group (ASX:ANZ) lost 0.8%. This sector, which is a significant part of the ASX 200, lost 0.6% in total.
Real estate stocks were among the worst performers, with the sub-index dropping as much as 2.7%, marking its worst intraday decline in four months. Goodman Group (GMG), a major player in the sector, saw its shares fall by more than 5% following reports that China Investment Corporation (CIC) was selling a $1.9 billion parcel of shares in the company.
Commodity Stocks Provide Some Relief
In contrast to the downturn in financials and real estate, commodity stocks saw positive movement, partially offsetting the broader market losses. The mining sector rose 1.1%, bolstered by rising iron ore prices, which hit a two-month high on Tuesday. Fortescue Metals (ASX:FMG) saw a rally of up to 3.2%, reaching a near one-month high, while Rio Tinto (ASX:RIO) advanced 0.8% following news of a joint venture with Sumitomo Metal to develop a copper-gold project in Western Australia.
Gold stocks also performed well, adding 0.7%, and technology stocks were up by 0.6%, providing additional support to the market.
Global Market Trends and New Zealand's Performance
Overnight, U.S. markets showed mixed results, with the Dow Jones Industrial Average losing 0.17%, while the S&P 500 and Nasdaq Composite gained 0.05% and 0.40%, respectively. Meanwhile, New Zealand’s S&P/NZX 50 index dropped 1.3%, closing at 12,926.57 points.
