Australia's share market has stumbled after a snag in Commonwealth Bank's quarterly update sparked a dramatic sell-off that wiped $12 billion from Australia's biggest company.
The benchmark S&P/ASX200 fell 17.1 points on Tuesday, down 0.19 per cent, to 8,818.8, as the broader All Ordinaries lost 11 points, or 0.12 per cent, to 9,098.4.
The bourse began the session higher as the US government lumbered towards a reopening deal, but it was not enough to counter a 6.6 per cent tumble in CBA shares after the bank's quarterly update.
A $2.6 billion unaudited cash profit in the three months to September 30 was not enough to allay concerns over rising operating costs and a dip in the bank's net interest margin.
"We're at the end of the Reserve Bank's interest rate cutting cycle, so banks are going to have to do more to attract buying volume from here," Pepperstone head of research Chris Weston told AAP.
"We're going to see a decline in net interest margins effectively, and competition could increase again, and I think we're at the point now where it's not the case that a rising tide lifts all ships in the sector, so you're likely to see outperformance from different banks."
Investors wiped more than $12 billion from CBA's $185 billion market cap, its worst daily performance since President Donald Trump's tariff polices sent global markets into a tailspin on April 7.
Australia's biggest bank was the top-200's second worst performer behind the Bendigo and Adelaide Bank, which tumbled 8.5 per cent to $11.64, after its post-tax cash earnings slipped 3.2 per cent from the recent quarterly average to $120.7 million.
NAB shares also fell 1.3 per cent, while Westpac edged higher and ANZ notched a record-high close above $38 a share.
Some financial sector outflows found their into raw materials stocks, which surged 1.3 per cent higher on the back of gold producers as investors shifted focus from the US government shutdown towards potential Federal Reserve interest rate cuts.
Northern Star and Newmont each gained more than three per cent as spot gold pushed to three-week highs of $US4,136 ($A6,340) an ounce.
Large cap miners edged either side of break-even as iron ore futures grinded lower over the session, slipping below $US103 a tonne.
Lithium miners continued to find buyers, who sent Liontown and Pilbara Minerals each more than seven per cent higher.
Energy and utilities stocks outperformed the broader market, up 1.3 per cent and 1.7 per cent, respectively, despite a slip in oil prices as oversupply concerns outweighed progress on the US government deal.
Santos shares jumped 2.5 per cent to $6.58 as Woodside gained 1.6 per cent, while coal producers edged lower and uranium plays were mixed.
Real estate stocks gained 1.2 per cent for the session in a broad segment rally, clawing back some losses after tumbling more than six per cent since late October.
Poker machine maker Lights & Wonder was the top 200's best performer, rocketing 11 per cent higher and continuing to rally since its solid quarterly update last week.
The tech sector shrugged off a strong lead from Wall Street, slipping after tracking app Life360 plunged more than five per cent despite an upbeat quarterly update as it flagged a $US120 million ($A183.8 million) takeover of advertising tech company Nativo.
The Australian dollar is buying 65.18 US cents, down slightly from 65.27 US cents on Monday at 5pm.
ON THE ASX:
* The S&P/ASX200 lost 17.1 points, or 0.19 per cent, to 8,818.8
* The broader All Ordinaries fell 11 points, or 0.12 per cent, to 9,098.4
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 65.18 US cents, from 65.27 US cents at 5pm on Monday
* 100.46 Japanese yen, from 100.47 Japanese yen
* 56.38 euro cents, from 56.45 euro cents
* 49.50 British pence, from 49.62 British pence
* 115.69 NZ cents, from 115.80 NZ cents
