Australian shares head for worst day in two weeks as banks and miners drag

Australian shares fell on Thursday and were on track for their worst session in two weeks, dragged down by banks and miners, while Santos slid after lowering the top end of its annual production forecast due to delays at its Alaska project.

The S&P/ASX 200 index fell 0.7% to 8,775.30 by 0053 GMT, heading for its biggest daily drop since October 8.

Santos dropped as much as 1.8% in its steepest intraday fall in three weeks, after the country’s second-largest independent oil and gas producer narrowed its 2026 production and sales volume outlook.

The energy sub-index declined 2%, posting its steepest intraday fall since October 1.

Sector major Woodside Energy declined nearly 4%.

Financials slid 0.3%, with three of the “Big Four” banks trading in negative territory, while ANZ rose 0.4%.

Miners fell 0.9% and were headed for a third straight session of losses, as copper prices dipped.

The sub-index touched its lowest level since July 21. Both BHP and Rio Tinto fell more than 1%, while iron ore miner Fortescue shed over 2% after warning that its operations might be affected if talks with state-backed buyer China Mineral Resources Group (CMRG) did not conclude by year-end.

Technology stocks edged 0.6% higher, tracking overnight gains on Wall Street after strong results from SpaceX.

Data centre operator NEXTDC gained as much as 8.2% after a more than 40% drop in the previous session on a revenue forecast cut for the year ahead. New Zealand’s benchmark S&P/NZX 50 index fell 0.3% to 13,715.87.

Data showed annual inflation slowed in the third quarter to 3.7%, coming in below analysts’ forecasts but above the top end of the central bank’s target range, reaffirming expectations of a Reserve Bank of New Zealand monetary tightening by next week.