Key facts
- Westpac reported a 20% decrease in mortgage applications following Australian tax changes.
- Westpac forecasts investor housing credit growth to halve next year.
- Westpac's cash earnings for the quarter ended June 30 were A$1.8 billion, down from A$1.9 billion a year earlier.
- The decline in Westpac shares dragged the financials sub-index down 1.9%.
- Miners and gold miners gained, with strong metal and bullion prices supporting the rise.
Australian shares experienced a downturn, primarily influenced by a significant drop in Westpac's stock following its quarterly update. The lender reported a 20% decrease in mortgage applications, attributed to recent Australian tax changes impacting property investors, and projected that investor housing credit growth would halve next year. This weighed heavily on the financial sector, with major banks like Commonwealth Bank of Australia, ANZ, and National Australia Bank also seeing declines. In contrast, the mining and gold sub-indices saw gains, buoyed by strong metal and bullion prices. Investors are also anticipating the Reserve Bank of Australia's upcoming policy decision, with interest rates widely expected to remain unchanged. In other company news, Treasury Wine Estates saw its shares rise after forecasting higher earnings and announcing adjustments to its U.S. wine production.