Australian Shares Under Strain as October Begins

Australian stocks slipped 119 points, or 1.4%, to 8,669 in early October trade, erasing prior gains as Wall Street closed mostly lower overnight on rising U.S. Treasury yields and weakness in financials and defensives. Locally, home values fell for a sixth straight month in September amid plunging transaction volumes, with another rate hike this week expected to trigger the worst downturn in three decades. Factory activity also shrank at the fastest pace in 21 months as new orders weakened under rising costs and softer demand. Losses were broad, led by energy minerals, financials, healthcare, and logistics. Lynas Rare Earths tumbled 5.5%, Suncorp Group dropped 5.1%, PLS Group fell 3.0%, and Ampol lost 2.5%. The four big banks also posted notable declines. Still, weakness was tempered after RBA Governor Michele Bullock signaled September’s hike could be the last following four increases this year. Traders now await August trade data due later today.