Australian shares declined by 1.1% early in the trading session, mirroring losses in New York, as concerns over US inflation data suggested a cautious approach by the Federal Reserve towards rate cuts. Energy stocks were the sole gainers following a surge in oil prices, with Woodside seeing a modest increase. However, major banks experienced a downturn prompted by UBS downgrading NAB, Westpac, and CBA due to valuation risks, while US treasury yields surged after higher-than-expected producer prices, raising concerns about inflationary pressures.
At 11:30am, the S&P/ASX 200 is 1.58 per cent lower at 7,592.00.
The SPI futures are pointing to a fall of 122 points.
Best and worst performers
The best-performing sector is Energy, up 0.42 per cent. The worst-performing sector is Consumer Discretionary, down 2.39 per cent.
The best-performing large cap is EBOS Group (ASX:EBO), trading 1.21 per cent higher at $35.07. It is followed by shares in Santos (ASX:STO) and ResMed (ASX:RMD).
The worst-performing large cap is Pilbara Minerals (ASX:PLS), trading 5.16 per cent lower at $3.955. It is followed by shares in Meridian Energy (ASX:MEZ) and Mineral Resources (ASX:MIN).
Commodities and the dollar
Gold is trading at US$2164.80 an ounce.
Iron ore is 2.6 per cent lower at US$104.35 a tonne.
Iron ore futures are pointing to a 1.7 per cent fall.
One Australian dollar is buying 65.68 US cents.
