08.07.202601:13:53UTC+00Australian Shares Under Pressure on Wall Street Weakness, China Caution

Australian shares dropped 116 points, or 1.3%, to 8,688 in Wednesday morning trade, extending losses for a third straight session and hitting their lowest level in a week. Sentiment weakened after a negative lead from Wall Street, where a broad selloff in U.S. chipmakers highlighted mounting doubts about the durability of the AI-driven rally.

Investors also stayed cautious ahead of China’s June CPI and PPI releases later this week, with those figures expected to offer fresh insight into demand in Australia’s largest trading partner. At the same time, markets were awaiting the minutes from the U.S. Federal Reserve’s June meeting for additional clues on the path of U.S. interest rates.

Losses were broad-based, with technology, materials, communication services, and financials all under pressure. Mining giant BHP Group fell 2.9%, Evolution Mining slid 3.8%, Telstra declined 3.1%, and Macquarie Group lost 2.4%. The four major banks were also weaker, shedding between 1.0% and 1.7%.