Australian shares slip on Fortescue-led miner selloff; banks limit losses

Australian shares experienced a decline on Thursday due to a selloff in miners, particularly following Fortescue's poor preliminary quarterly update. The S&P/ASX 200 index fell 0.4% to 8,693.30 points by 23:28 GMT, after closing 0.1% lower on Wednesday. The Federal Reserve's minutes revealed a divided opinion among policymakers regarding future rate hikes, with officials debating whether recent inflation pressures were mainly supply-driven or if stronger demand warranted tighter policy.

This uncertainty left investors cautious about the trajectory of future rate cuts. Miners suffered a decline of over 2%, with Fortescue, the world's fourth-largest iron ore producer, falling more than 3.5% to its lowest level since July 2025. The miner's cash balance dropped by 37% in the September quarter, and preliminary iron ore shipments fell by 6%.

The sub-index also faced downward pressure from lower aluminum and zinc prices. Tech stocks declined by 1.1%, mirroring Wall Street's losses, with WiseTech Global down 0.6%. Gold stocks were hit the hardest, falling 2% to their lowest since mid-September, as gold prices dropped. Energy stocks gained 1.2%, with Woodside Energy and Santos rising more than 0.5% each.

Banks, including the "Big Four," saw a 0.5% increase in value. On a brighter note, the bourse operator ASX rose 4.5% to its highest level since mid-August, following Citi's upgrade of its earnings forecasts for ASX, driven by a surge in trading activity. Meanwhile, New Zealand's benchmark S&P/NZX 50 index experienced a slight decline at 13,667.48.