Australia stocks slip 0.3% in morning trade, extending losses

Australian shares slipped 29 points or 0.3% to 9,100 in Thursday’s morning trade, extending losses after Wall Street weakened overnight as hotter-than-expected PCE inflation lifted yields and kept investors cautious ahead of Nvidia’s earnings.

Geopolitical tensions added pressure, with renewed Gaza strikes and tanker attacks in Hormuz fueling oil volatility and inflation concerns.

Locally, July headline inflation topped forecasts on fuel and travel costs, while core inflation also surprised higher, raising the risk of another RBA hike.

Sector moves were mixed: tech services, non-energy minerals, and retail trade dragged, while health services, industries, and manufacturing lent support.

Notable laggards included Sigma Healthcare (-4.9%), Wisetech Global (-4.8%), and Xero Ltd. (-2.0%).

Heavyweight BHP eased 0.9% and the big four banks traded mixed.

Traders now await domestic releases later today, including July household spending and Q2 private capital expenditure.