Australian stock market declines due to persistently high bond yields and rising oil prices
路透社2026/10/07 06:41As of market close, mining and banking stocks recorded the largest declines this week, as investors await the minutes of the Reserve Bank of Australia’s meeting scheduled for October 13. Boosted by a deal between Google and Constellation Energy, uranium mining stocks surged. On Wednesday, the Australian stock market closed slightly lower amid volatile trading, with global yields and oil prices remaining high, leading investors to adopt a wait-and-see attitude. The benchmark S&P/ASX 200 Index closed down 0.1% at 8,727.70 points, having risen as much as 0.2% during the session. The index had gained more than 1% over the past three trading days. The recent bond market sell-off kept the yield on the benchmark 10-year U.S. Treasury above 5.3%, dampening risk appetite among investors. Oil prices rose amid storm threats in the Gulf of Mexico and escalating tensions between Saudi Arabia and Houthi forces. According to BetaShares investment strategist Hugh Lam, despite persistently high bond yields, the stock market remains resilient with global corporate earnings serving as the main support; however, sustaining the rally through year-end is becoming increasingly difficult, especially for long-duration growth stocks. Rising yields signal the market expects higher borrowing costs for governments and corporations, and also anticipates sustained inflation. On the day, banking stocks fell 0.6%, marking their worst single-day performance in nearly a week. Of the “big four” banks, Westpac saw the largest drop, down 1.2%. The market is awaiting the Reserve Bank of Australia’s policy meeting minutes next week for insights into policymakers’ views on inflation, which prompted the central bank to raise interest rates last week to their highest levels in 15 years. September quarter consumer price data, due at the end of October, may provide further clues on the direction of interest rates. The mining sub-index slipped 0.3%, dragged down by falling copper prices. Industry leaders BHP fell 0.7% and Rio Tinto dropped 0.6%. Energy stocks rose 0.5%, driven by uranium miners after Google signed a 20-year power purchase agreement linked to nuclear power generation. Component stocks Deep Yellow, Paladin Energy, and NexGen Energy Ltd gained between 2.5% and 4.6%. New Zealand’s S&P/NZX 50 Index fell 0.1%, closing at 13,684.04 points.
As of market close
Jasmeen Ara Islam Shaikh
Reuters, October 7 - On Wednesday, the Australian stock market closed slightly lower amid choppy trading, as global yields and oil prices remained high and investors stayed on the sidelines.
The benchmark S&P/ASX 200 Index .AXJO closed down 0.1% at 8,727.70 points, after rising as much as 0.2% during the session. The index had gained over 1% in the previous three trading days.
A recent sell-off in the bond market kept the benchmark 10-year US Treasury yield above 5.3%, dampening investor risk appetite; while oil prices rose due to storm threats in the Gulf of Mexico and escalating tensions between Saudi Arabia and Houthi forces.O/R US/
Betashares investment strategist Hugh Lam said that despite elevated bond yields, the stock market remained resilient, supported mainly by global corporate earnings. However, especially for longer-duration growth stocks, it is becoming increasingly difficult to sustain the rally through the end of the year.
Rising yields indicate market expectations for higher borrowing costs for governments and businesses, alongside persistent inflation expectations.
On the day, banking stocks .AXFJ fell 0.6%, marking their worst single-day performance in nearly a week.
Among the "Big Four" banks, Westpac WBC.AX led the decline, falling 1.2%.
The market is awaiting the release of next week’s Reserve Bank of Australia policy meeting minutes for insight into policymakers’ views on inflation—which was what prompted the central bank to raise rates last week to their highest level in 15 years (link).
Consumer price data for the September quarter, due at the end of October, may offer further clues on rate trends.
Dragged down by lower copper prices, the mining sub-index .AXMM dropped 0.3%.MET/L
Industry giant BHP BHP.AX fell 0.7%, while peer Rio Tinto RIO.AX declined 0.6%.
Energy stocks .AXEJ rose 0.5%, led by uranium miners (link) after Google GOOGL.O signed a 20-year (link) nuclear power-linked electricity purchasing agreement.
Sub-index constituents Deep Yellow DYL.AX, Paladin Energy PDN.AX, and NexGen Energy Ltd NXG.AX rose between 2.5% and 4.6%.
New Zealand's benchmark S&P/NZX 50 Index .NZ50 slipped 0.1% to close at 13,684.04.
(To assist non-native English speakers, Reuters provides its reports in several other languages through automated translation. Automated translations may contain errors or lack the intended context, so Reuters does not guarantee the accuracy of automatically translated texts and provides them for readers’ convenience only. Reuters assumes no responsibility for any damage or loss caused by the use of automated translation functions.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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