Australian shares extend declines after global selloff, banks top drag

Australian shares extended losses on Wednesday, following a global selloff after U.S President Donald Trump’s spat with Europe over Greenland reignited geopolitical uncertainty.

The S&P/ASX 200 index fell 0.4% to 8,782 by 0007 GMT and was headed for a third straight session of declines, with losses in banks outweighing gains in miners.

The benchmark slid 0.7% on Tuesday in its sharpest fall since mid-December.

Stocks across Wall Street, Europe and Asia have been trading lower since Trump threatened extra levies on eight European countries that are against his move to take control of Greenland.

In Sydney, rate-sensitive banks shed 1.3%, hitting their lowest level since December 1.

The “big four” banks fell between 0.9% and 1.8%.

Investors are now awaiting the December jobs report, due for release on Thursday, and the December-quarter inflation data next week for a better picture of the country’s interest rate trajectory.

Technology stocks tumbled 2.2% to their lowest level since early-April 2025.

Healthcare and real estate stocks fell 0.6% and 0.7%, respectively.

Limiting the benchmark index’s fall, gold stocks soared 3% to record levels as prices of the safe-haven asset notched another fresh peak. Evolution Mining climbed 5.8% to an all-time high after reporting a 9.8% sequential rise in December-quarter gold production.

Westgold Rescources rose 8.1% to a record high on reporting record quarterly production.

Gains in gold stocks helped the mining sub-index rise 1.4%.

Sub-index heavyweight Rio Tinto advanced 1.1% as it beat expectations for quarterly iron ore and copper production. BHP Group added 0.7%.

Lynas Rare Earths rose 6% after reporting a 43% jump in its second-quarter revenue.

In New Zealand, the benchmark S&P/NZX 50 index fell more than 1% to 13,409, its lowest level in nearly a month.