ASX 200 closes down 1% at one-month low after Wall Street selloff

Australia’s ASX 200 fell 88 points, or 1.0%, to end at 8,978 on Wednesday, its third straight loss and a one-month low, as sentiment soured after Wall Street extended falls for the third session Tuesday amid renewed Middle East conflict, which lifted oil prices and stoked inflation fears and rate-hike bets.

Locally, worries over supply disruption and inflation kept traders edgy, with markets pricing in nearly a 60% chance of an RBA hike later this month.

Traders also braced for July trade data due Thursday after June’s strong exports and subdued imports.

Still, losses were capped by stronger-than-expected Q2 GDP data, driven by private demand and mining exports.

Sectoral weakness was broad, led by non-energy minerals, commercial services, and consumer names.

BHP Group (-3.6%) and Rio Tinto (-1.9%) dragged miners lower, while weaker bullion hit Northern Star Resources (-5.0%) and Evolution Mining (-1.9%).

In contrast, Woodside Energy rose 1.2%, and the big four banks added 0.2% to 0.5%.