Australian shares fall on losses in tech, discretionary stocks; US-Iran clashes resume

According to Business Recorder, Australian shares slipped on Tuesday as discretionary and technology shares lost ground, while energy names firmed. The S&P/ASX 200 index was 0.4% lower at 9,040.30 in early trade, extending a 0.2% decline from Monday. Sentiment soured amid renewed military exchanges between the United States and Iran and growing worries about inflation.

Oil prices firmed after Iranian strikes on two American bases in Jordan, a reply to an attack on Larak Island that revived supply concerns. The energy sub-index rose as much as 1.4%, on course for its strongest day in a week, while Santos and Woodside Energy each gained 1%. Discretionary stocks dropped as much as 2.8% to their weakest level in almost three months, and technology names lost up to 2%.

Home prices dropped for a fifth month running in August, with the slide now reaching additional cities and country regions. Interest rate swaps put the odds above 50% of a 25 basis point increase in September. Financials and real estate names, which are sensitive to rates, slipped 0.4% and 0.6%. Investors now look ahead to second-quarter GDP data, due Wednesday.