Australian Shares Trade Notably Lower

Australian stocks fell 51 points, or 0.6%, to 8,836 in Wednesday morning trade, reversing prior gains and hitting a one-week low. Sentiment weakened as U.S. equity futures dropped sharply amid growing speculation that Democrats could gain control of the House of Representatives and potentially the Senate as polls closed nationwide in U.S. midterm elections. Locally, industry conditions were weak in October, reflecting contractions in manufacturing activity and construction output. Private-sector business activity also shrank at its fastest pace in seven months, amid downturns across both manufacturing and services. However, losses were limited by data showing a rebound in household spending in September. Most sectors traded lower, led by logistics, industrials, technology, and financials. The four major banks fell 0.5%—1.5%, while miners BHP Group (-0.8%) and Rio Tinto (-0.9%) also retreated. Other notable laggards included Qantas Airways (-2.6%), Reece (-1.5%), and Fortescue (-1.3%).