Australian shares slipped on Thursday, led by mining stocks, as appetite for risk assets declined after U.S. Federal Reserve Chair Jerome Powell doused hopes of an interest rate cut, and the deadline for a trade deal with the United States loomed.
The S&P/ASX 200 index fell 0.5% to 8,713 by 0020 GMT. The benchmark, however, was on track for a fourth consecutive month of gains.
Powell cautioned on Wednesday that it’s still too early to tell whether the central bank will lower interest rates in September, tempering the market’s growing hopes for a rate cut.
Meanwhile, Australia, already facing a 10% baseline US tariff, could see that figure rise to between 15% and 20% on its exports if it fails to strike a separate trade agreement with the United States.
Countries such as India, Canada and Thailand are rushing to secure a trade agreement with the United States before the August 1 deadline.
On the Sydney bourse, heavyweight miners led the decline, dipping as much as 2.7%.
The sub-index was on track for its weakest session since April 9, tracking an earlier slump in copper futures after Washington’s decision to impose a 50% import tariff on some copper products.
The sub-index, however, was set for its best month since September 2024, reflecting sharp gains in iron ore prices.
Gold stocks added to the fall, sliding 2.7% to their lowest level since April 9 after bullion prices fell overnight.
Bucking the trend, technology stocks climbed as much as 0.8% to reach a record high, riding a post-market rally in U.S. tech giants Microsoft and Meta after both companies delivered strong earnings.
The sub-index was set for a fourth straight month of gains.
New Zealand’s benchmark S&P/NZX 50 index fell 0.1% 12,846.42.
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