ASX 200 Slides as Bank Stocks Fall After Wall Street Sell-Off; Glencore Makes Debut on Australian Market

SYDNEY — Australian shares fell on Wednesday afternoon, with the country's major banks leading losses after a sell-off in U.S. bank stocks overnight, while mining giant Glencore made its debut on the Australian Securities Exchange.

The S&P/ASX 200 was down 59.1 points, or 0.67%, at 8,724.8 as of 3:15 p.m. Sydney time, putting the benchmark on track to snap a three-day winning streak.

The index had fallen further earlier in the session. By midday, it was down 75.3 points, or 0.84%, at 8,709.9, while the broader All Ordinaries had lost 71 points, or 0.8%, to 8,850.5. The market recovered some ground in afternoon trading but remained firmly lower.

The index closed Tuesday at 8,783.9, up just 0.7 of a point. Futures had pointed to a weaker open after a poor session on Wall Street.

Banks drag the market

The heavyweight financials sector fell almost 2% by midday, more than wiping out its gains from the previous session. The decline followed a sell-off in U.S. bank stocks after Citigroup and Goldman Sachs fell overnight, even though both beat third-quarter profit forecasts.

Big U.S. banks kicked off the third-quarter earnings season on Tuesday. JPMorgan Chase missed analyst expectations, while results from other lenders were mixed.

Because banks make up a large share of the Australian benchmark, weakness in the sector tends to have an outsized effect on the overall market.

CommBank chief warns of slowing growth

Commonwealth Bank of Australia led the big four banks lower as the country's largest lender held its annual general meeting in Sydney.

Chief Executive Matt Comyn described a "demanding environment," telling shareholders that "growth is slowing and inflation remains too high." He said it would take time for higher interest rates to return inflation to the Reserve Bank of Australia's target range.

Comyn also warned that Australia should expect more frequent and more volatile international shocks over which the country has little control.

The comments came a day after the Reserve Bank's September meeting minutes said the board had not ruled out further increases in the cash rate, citing the effect of developments in the Middle East on the inflation outlook.

Glencore debuts

Glencore, one of the world's largest commodity trading and mining companies, began trading on the ASX on Wednesday. Its shares inched higher to 11.22 Australian dollars in early trading.

The company is already listed on the London Stock Exchange and the Johannesburg Stock Exchange. It is expected to be added to the S&P/ASX 200 in March 2027.

Energy stocks gain, uranium slumps

The energy sector rose, tracking higher oil prices despite a lack of major new developments in the Middle East conflict overnight. Brent crude was trading at $106.60 a barrel.

Woodside and Santos both climbed, while refinery operators and coal producers were mostly flat.

Uranium stocks fell again. Paladin Energy tumbled 8% after reporting that its September-quarter production was severely affected by a shutdown and pit transition at its Langer Heinrich uranium mine in Namibia.

Miners and gold stocks lower

Non-energy miners slipped 0.7% by midday, with gold miners continuing to weigh on the sector. Gold eased overnight to $4,157 an ounce. The local gold sub-index has fallen more than 9% since September.

BHP and Rio Tinto each fell about 0.5%. Rio Tinto released its quarterly update Wednesday, with third-quarter production coming in line with expectations.

Bell Potter upgraded lithium miner PLS Group to a buy rating following a period of weakness in the stock, though it trimmed its price target to 4.40 Australian dollars from 5.20 dollars.

Property trusts outperform

Real estate investment trusts were the best-performing sector, rising 0.6% by midday. The gains followed comments from a U.S. Federal Reserve official who suggested the central bank may need only one more interest rate increase in its current cycle.

Property stocks are particularly sensitive to interest rates, and signs that rate increases may be nearing an end tend to support the sector.

Consumer stocks retreat

Consumer-facing companies were lower. Consumer staples fell 0.98% and consumer discretionary stocks lost 0.5% by midday, as supermarket operators Coles and Woolworths and gaming machine maker Aristocrat Leisure declined.

Regis Resources halted

In other company news, gold miner Regis Resources was placed in a trading halt following a Federal Court decision that could force the federal environment department to overturn a previous declaration affecting its McPhillamys Gold Project site.

Australian dollar rises

The Australian dollar was buying 69.90 U.S. cents at midday, up from 69.64 U.S. cents at 5 p.m. Tuesday.

What's ahead

Investors will be watching U.S. inflation data due Wednesday night Australian time, which could influence expectations for interest rates in the United States and globally. Further results from major U.S. banks, including Morgan Stanley and Bank of America, are also scheduled.

Locally, attention will remain on commodity prices, developments in the Middle East and further annual general meetings from major Australian companies.

The Australian share market closes at 4 p.m. Sydney time.