Australian shares close at over three-month low

Published Tue, Sep 15, 2026 · 03:55 PM

[SYDNEY] Australian shares closed at a more-than-three-month low on Tuesday (Sep 15), dragged down by commodity stocks and banks as investors awaited the US Federal Reserve’s rate decision later this week, while higher bond yields and inflation concerns also weighed.

The S&P/ASX 200 fell 0.9 per cent to close at 8,672.50 points, its lowest close since early June. It rose 0.1 per cent on Monday.

The US Federal Reserve policy meeting starts on Wednesday, and investors are wary that stubborn inflation and higher oil prices could warrant a further tightening of interest rates.

That increases the odds of the Reserve Bank of Australia needing to maintain a hawkish stance, especially as renewed hostilities in the Middle East add to uncertainty and keep risk appetite subdued.

“The Fed meeting kicks off tomorrow with a high probability of a 25 bps hike … For Australian equities that means growth multiples compress, rate-sensitive Reits and utilities underperform,” said Emanuel Ajay Datt, managing director of Datt Group.

“Renewed Middle East tensions and Iranian attacks on Gulf shipping have pushed oil prices higher and investors appear to be taking risk off the table.”

In Sydney, miners fell 2.3 per cent, their fourth straight session of losses, dragged down by lower iron ore prices, with BHP and Rio Tinto losing more than 2 per cent each.

Banks lost 1.1 per cent, with the “Big Four” lenders trading in the red. That, said Datt, suggested investors were focusing more on a potential deterioration in credit quality than the boost to net interest margins from higher rates.

Gold stocks fell 3.1 per cent and energy stocks dropped 1.6 per cent

Bucking the trend, health stocks gained 1.5 per cent and technology stocks ended 0.3 per cent higher.

Across the Tasman Sea, the New Zealand benchmark S&P/NZX 50 index fell 0.6 per cent to 13,484.22 points. REUTERS