Benchmark slips as banking sell-off offsets resources rebound

Snapping a two-day winning streak, Australian shares sank on Thursday.

The local share market snapped a two-day winning streak on Thursday as a sell-off in banking stocks offset a rebound in the resources sector.

At the closing bell, the benchmark had shed 0.2 per cent, or 15.8 points, to 7713.6, while the broader All Ordinaries shed a similar amount to 7974.

The Australian dollar edged lower, buying US66.14c against the greenback.

Equities slipped on Wall Street overnight ahead of fresh retail data, with the US benchmark, the S&P500 easing 0.2 per cent.

Investors are looking for fresh clues on how soon and aggressively the US Federal Reserve can commence rate cuts.

However, with bond traders pricing in a 70 per cent chance of a rate cut by June, Westpac chief economist said recent inflation data was yet to provide enough comfort for central banks to begin easing monetary policy.

Westpac chief economist Luci Ellis cautioned of the tension between rate cut expectations and recent inflation data flows. Picture: NCA NewsWIRE, Monique Harmer

“Lurking behind this question about the timing of the first rate cut are much bigger and more difficult questions about the size of the easing cycle and where ‘neutral’ may now lie,” Ms Ellis wrote in a note to clients.

“Indeed, the sort of uncertainty we are seeing now may be a recurring theme in the next policy phase.”

Locally, financials shed 1.9 per cent after a run of downgrades by analysts at Macquarie.

Of the big four banks, ANZ and Westpac shed 3.8 per cent to $28.68 and $26.47, respectively.

NAB slipped 2.8 per cent to $33.50, and Commonwealth Bank sank 1.1 per cent to $116.22.

Meanwhile, materials stocks rose 1.9 per cent as copper futures ripped 3.1 per cent higher overnight, with Rio Tinto climbing 1.9 per cent to $119.19 and Fortescue adding 0.1 per cent to $24.53.

ASX heavyweight BHP added 2.7 per cent, its most since late September, to $43.06 after Citi analysts upgraded the stock to a “buy” rating, saying it “now looks cheap enough” following a recent pullback in the share price.

In company news, artificial intelligence firm Appen plunged 17.1 per cent to 80c after it announced US-rival Innodata had withdrawn a $154m takeover bid for the ASX-listed company.

Former Qantas executive Olivia Wirth has been named as the newly appointed executive chair of department store retailer Myer. Picture: NCA NewsWire / Damian Shaw

Shares in Aussie Broadband dived 18 per cent to $3.55, its worst day since May 2022 to be the biggest laggard.

The telecommunications provider lost a white-label deal with Origin Energy, which will see 130,000 of its broadband customers migrate to rival Superloop.

Securing the exclusive six-year contract, Superloop shares advances 24.8 per cent to 26c.

Myer has named former Qantas executive Olivia Wirth as its freshly minted executive chair after Ari Mervis exited the position after just four months.

Shares in the Solomon Lew-backed retailer added 7.6 per cent to 86c.

Gina Rinehart-backed Arafura Rare Earths rocketed 76.3 per cent to 26c after the Albanese government announced $840m worth of loans and grants to help the miner develop critical minerals supply.

Overseas, Singaporean-listed Optus parent, Singtel shares slipped one per cent in early trading following reports it was planning to sell a portion of its stake in Optus to Canadian investment fund Brookfield.

Originally published as Benchmark slips as banking sell-off offsets resources rebound