Australian shares drifted within a tight range on Tuesday as losses in technology and financial stocks offset gains in the resources sector, after recession worries increased due to warnings from Apple Inc and Goldman Sachs.
The S&P/ASX 200 index was down 0.1% at 6,680.2 by 0055 GMT. The benchmark rose 1.2% on Monday.
Goldman warned it may slow hiring and cut expenses after reporting a 48% slump in quarterly profit, while a Bloomberg report said Apple was planning to do the same for next year.
The developments dragged Wall Street lower overnight.
Investors are also awaiting minutes of the Reserve Bank of Australia’s July meeting for more clarity on its policy tightening stance.
Domestic technology stocks led losses with a near 2% drop, following their peers’ slide on the Nasdaq Composite Index.
Xero Ltd and ASX-listed shares of Block Inc declined 3.6% and 2.3% respectively.
Financials slipped 0.4%, with two out of “Big Four” banks falling 0.2% and 1.3% respectively.
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However, energy stocks were one amongst the gainers, jumping as much as 4.2%, seeing its best day since June 8 after oil prices jumped.
Miners gained 1.3% as iron ore prices in China crossed $100 per tonne, after Asia’s largest economy sought to ease concerns in the trouble-ridden property sector.
Index heavyweights Rio Tinto Ltd and Fortescue Metals Group climbed 1.5% and 2.1%, respectively.
BHP Group joined Rio Tinto in warning about labour shortages and inflationary pressures. Its shares, however, rose about 1.9%.
New Zealand’s benchmark S&P/NZX 50 index was down 0.4% at 11,114.2.
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