23.10.202601:40:54UTC+00Australian Stocks Set to Post Modest Weekly Drop

Australian shares were down 28 points, or 0.3%, at 8,763 around midday Friday, extending earlier losses amid weaker U.S. stock futures. The decline followed an overnight sell-off in major Wall Street tech names on mounting doubts over the durability of the AI-driven rally.

Domestically, sentiment was pressured by persistent fears of a fifth interest rate hike this year after Reserve Bank Deputy Governor Hauser warned that the inflation outlook “looks materially worse” than previously estimated. Adding to the cautious mood, flash October PMI readings remained subdued, with both manufacturing and services activity continuing to contract.

Sector-wise, technology, non-energy minerals, and industrial services weighed on the benchmark index, partially offset by gains in energy minerals and communications. BHP Group dropped 3.1% on the back of weaker copper production and softening iron ore prices. Gold miners also declined, with Northern Star Resources down 2.5% and Evolution Mining falling 3.1%.

In contrast, three of the four major banks advanced, each rising more than 2%. For the week, the market is on track for its first weekly decline in four, currently down about 0.5%.