Banks snap losing streak but market remains weak
The S&P/ASX200 is down 18.3 points, or 0.21 per cent, to 8,511.7, as the broader All Ordinaries fell 24.4 points, or 0.28 per cent, to 8,733.5.
The weak start came after a similar session on Wall Street overnight, as White House officials mulled a potential attack on Iran and after the US Federal Reserve conceded stagflation risks were rising in the world's largest economy.
Market participants remained edgy and uncertain about the Middle East conflict and potential US military involvement, Capital.com market analyst Kyle Rodda said.
"Such a scenario would raise the risk of a greater regional conflict, with implications for global energy supply and, probably, economic growth."
Despite seven local sectors trading lower by lunchtime, financials staged a comeback with a 0.5 per cent gain after fading 1.5 per cent in the previous six sessions.
Westpac was leading the charge, up 1.5 per cent to $33.50, while NAB and CBA pushed 0.7 per cent and 0.5 per cent higher respectively.
The NAB rise came despite the Australian Competition and Consumer Commission fining the bank $750,000 over breaches to Consumer Data Right rules.
Materials was the worst-performing sector with a 1.5 per cent slip, as weak iron ore prices continued to weigh on large caps BHP (-1.5 per cent), Rio Tinto (-1.7 per cent) and Fortescue (-1.3 per cent).
Gold miners also traded lower as the safe haven's price continued to coil in a slight downward trajectory, with futures trading at $US3,396 ($A5,232) an ounce.
Energy stocks fell 0.6 per cent, as oil and gas giants Woodside (-0.6 per cent) and Santos (-0.3 per cent), handed back some earlier gains as oil prices consolidated after their recent run-up.
Futures in global benchmark Brent Crude were trading at $US74.74 a barrel, roughly on par with yesterday's ASX close.
Australia's tech sector was down 0.9 per cent after hitting an intraday record on Wednesday, with WiseTech Global weighing heavily with a 1.6 per cent slip to $107.15 after announcing the departure of two board members.
Directors Charles Gibbon and Michael Gregg had been long-time supporters of founder and executive chair Richard White, who has been at the centre of a number of scandals at the company.
Utilities continued to sell off after Friday's 4.2 per cent surge. The sector has lost 3.5 per cent in value in the subsequent four sessions.
The Australian dollar is buying 64.84 US cents, down from 65.07 on Wednesday at 5pm, and edging lower after Australia's unemployment rate held steady in May, offering no surprises in economic data ahead of a widely expected Reserve Bank rate cut in July.
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Perth Now
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