Australia’s share market has quickly handed back a modest morning gain ahead of a key US interest rate decision, with confidence still shaky in the face of multiple market risks.
The benchmark S&P/ASX200 index rose 3.7 points by midday on Wednesday, up 0.4 per cent, to 8,876.2, while the broader All Ordinaries gained 3.6 points, or 0.04 per cent, to 8,852.9.
The shaky start echoed a nervy session for global market overnight, as Brent crude edged higher to $US108.40 as traders mulled an extended closure of a key Saudi oil pipeline and surging US bond yields.
“This comes ahead of the (US Federal Reserve) policy decision later tonight, where markets and analysts are widely expecting a 25 basis point rate hike,” Westpac economist Ryan Wells said.
“Westpac sees a hike in September and a follow-up in the fourth quarter, as allowing for enough time for the underlying disinflation evident above to be reflected in other measures.”
The energy sector again led the bourse with a 2.7 per cent rally as Woodside, Santos, and refinery operators Ampol and Viva Energy surged on higher crude prices.
The recent plunge in raw materials stocks slowed, the sector dipping slightly as BHP rebounded alongside copper prices as OpenAI’s Sam Altman made a case for industry self-regulation on artificial intelligence-related risks.
Gold stocks sold off sharply despite the precious metal trading relatively steady at $US4,289, ($A6,021) an ounce.
Still, Australian gold miners’ profitability has surged and related exchange-traded funds attracted $115.6 million in net inflows in August, on top of $95.3 million in July.
Those were the two strongest consecutive months in two years, according to Betashares investment strategist Tom Wickenden.
“Return on equity across the gold miner sector was 8.7 per cent at the start of 2026 and has reached 20.6 per cent by August, an improvement of more than 130 per cent in eight months,” he said.
“With structural support to the gold price … global gold miners could be poised to see significant returns if they maintain their earnings and re-rate higher.”
Battery minerals miners were still under selling pressure, with Liontown and PLS each dropping more than 2.5 per cent as reduced demand continued to weigh on lithium prices.
The sell-down in financials slowed, the segment easing slightly as the big four banks traded either side of break-even.
Consumer-facing stocks retreated from Tuesday’s advance, with staples and cyclicals each losing at least 0.3 per cent.
Bitcoin fell below $US75,000 ($A105,290) for the first time since August after a US cryptocurrency bill failed to pass the American Senate.
In company news, James Hardie shares tumbled more than five per cent after its investor day presentation predicted strong future cash flows but held earnings guidance steady.
The Australian dollar was buying 71.20 US cents, about on par with on Tuesday at 5pm’s 71.19 US cents.
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