18.09.202506:58:51UTC+00Aussie Shares End Lower as Energy Stocks Drag

The S&P/ASX 200 declined by 0.8%, reaching its lowest point in two weeks at 8,755 on Thursday, primarily due to a downturn in energy stocks. This slump followed the decision of an ADNOC-led consortium to retract its takeover offer for Santos. Additionally, the market grappled with a disappointing jobs report – employment figures indicated a drop of 5,400 in August, in stark contrast to the anticipated increase of 21,500. Notably, full-time employment plummeted by 40,900. Despite this, the unemployment rate remained steady at 4.2%, although participation decreased to 66.8%, indicating a gradual weakening of the labor market. In light of sustained inflation levels, the likelihood of an interest rate cut by the Reserve Bank of Australia (RBA) in September is perceived as only 20%, with odds for November rising to 70%. In the corporate sector, energy companies experienced a significant setback, losing 5.9% — marking their weakest performance in over five months. Santos notably dropped by 11.9% after the withdrawal of the $18.7 billion bid by the Abu Dhabi-led group due to prolonged disagreements over valuation and terms. Additionally, major mining firms experienced a slight decline of 0.4% amid falling copper prices, while financials sensitive to interest rate changes dipped by 0.9%, with the Commonwealth Bank of Australia (CBA) seeing a fall of 2.3% in its fourth consecutive day of losses.