Despite a positive lead from Wall Street, the Australian stock market is trading weak on Tuesday, with investors mostly treading cautiously amid uncertainty about the U.S. Federal Reserve's stimulus program.
Shares from consumer staples, financial, industrial, mining and energy sections are mostly trading weak, while property trusts stocks are trading firm.
The benchmark S&P/ASX 200 index, which declined to 4,797.4 in early trades, is currently trading at 4,809.2, down 16.7 points or 0.3 percent from its previous close. The broader All Ordinaries index is down 17.6 points or 0.4 percent at 4,787.4, around 10 points off an early low of 4,777.8.
Among bank stocks, ANZ Bank, National Australia Bank and Westpac (WBK) are down 0.6 to 0.9 percent, while Commonwealth Bank of Australia is down marginally. Bendigo & Adelaide Bank and Bank of Queensland are up marginally.
Top miners BHP Billiton (BHP) and Rio Tinto (RIO) are down 0.5 percent and 0.6 percent, respectively.
Regis Resources is down 4.6 percent and Lynas Corp. is trading lower by about 4 percent. PanAust, Perseus Mining and Aurora Oil & Gas are down 2 to 2.6 percent. Brambles, Incitec Pivot, Whitehaven Coal, Santos and Origin Energy are down 1.4 to 2 percent.
Commonwealth Property Office Fund, Dexus Property Group, Investa Office Fund, Arrium and Boral are trading higher by 2 to 3 percent. Mirvac Group, Tatts Group, Tabcorp Holdings, CFS Retail Property Trust and Sonic Healthcare are also up with strong gains.
Elders Limited shares are down more than 11 percent on reports that the company has shunned a takeover bid for its rural services division by rival Ruralco.
In the currency market, the Australian dollar opened weak against the U.S. dollar. In early trades, the local unit was quoting at US$0.9549, down 0.7 percent from Monday's close of US$0.9621.
On Wall Street, stocks ended mostly higher on Monday, despite lingering worries about the outlook for the Federal Reserve's stimulus program. The early strength came on the heels of the release of some upbeat economic data, including a report from the National Association of Home Builders that showed homebuilder confidence jumped to a seven-year high in June.
The major averages finished the session well off their best levels of the day but still posted strong gains. The Dow jumped 109.7 points or 0.7 percent to 15,179.9, the Nasdaq advanced 28.6 points or 0.8 percent to 3,452.1 and the S&P 500 climbed 12.3 points or 0.8 percent to 1,639.
Major European markets too closed higher on Monday. While the U.K.'s FTSE 100 index moved up 0.4 percent, the German DAX index and the French CAC 40 index gained 1.1 percent and 1.5 percent, respectively.
U.S. crude oil snapped a three-day gain to end lower on Monday, after having trended higher for most of the day amid concerns over supply disruptions following geopolitical tensions in the Middle East. Unconfirmed news reports on the Federal Reserve cutting back on its quantitative easing program dragged down oil prices.
Crude for July delivery ended down $0.08 or 0.1 percent at $97.77 a barrel on the New York Mercantile Exchange.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.