01.09.202601:23:54UTC+00Australian Shares Drop Again as September Opens

Australian shares fell 40 points, or 0.4%, to 9,040 on Tuesday morning, the first trading day of September, extending recent losses. The market tracked a weaker Wall Street session, where equities declined as rising oil prices and escalating U.S.–Iran tensions drove Treasury yields toward 4.7%, pressuring risk assets.

Domestic sentiment was also subdued ahead of Wednesday’s release of Q2 GDP data, with growth expected to remain soft after last quarter’s slowest pace in a year. A busy local data calendar added to the cautious tone, with July flash building approvals, the Q2 current account, and August commodity prices all due today, while China’s private manufacturing PMI is set to follow later.

Sector moves were mixed. Losses were led by retail trade, commercial services, and transport, though gains in energy minerals and consumer durables helped limit the overall decline. Three of the four major banks slipped modestly. Among notable underperformers, REA Group dropped 4.4%, Wesfarmers Ltd. fell 3.2%, Woolworths declined 2.5%, and Fortescue eased 2.2%. In contrast, energy names outperformed, with Woodside Energy up 1.1% and Santos gaining 1.5%.