Australian shares recovered on Thursday led by banks and miners, after a sharp decline in the previous session as national data pointed towards an economic slowdown in the country.

The S&P/ASX 200 index was up 0.4% at 7,983.2, as of 1230 GMT.

The benchmark fell 1.9% on Wednesday.

According to official data released on Wednesday, the nation’s economic malaise continued in the April-June quarter as consumer spending was restrained by sticky inflation and increased borrowing prices for extended periods of time, triggering a broad-based sell off.

However, the Reserve Bank of Australia’s monetary policy stance still remains unclear as Governor Michele Bullock had previously cautioned of high inflation.

Bullock is scheduled to make a speech later in the day on sticky inflation in the country, which investors will assess closely for clarity on an interest rate cut.

Miners rose 0.9% tracking the broader index, with sector giants BHP Group and Rio Tinto rising 1.1% and 0.9%, respectively.

Financials advanced 0.8%, with the ‘Big Four’ banks up between 0.9% and 1.4%.

Energy stocks, on the other hand, tanked about 3.3% as oil prices remained lower.

Sector giant Woodside Energy dragged the sub-index further down, as the company traded ex-dividend and Citi analysts downgraded the stock to ‘Buy’.

Australia shares fall amid broad-based sell off; GDP data in focus

Woodside fell as much as 6%, eyeing its worst day since March 8, 2023, if current losses hold. Brent crude futures rose 0.32% to $72.93 a barrel while US West

Texas Intermediate (WTI) crude gained 0.38% to $69.46 per barrel.

The US Dow Jones Industrial Average rose 38.04 points, or 0.09%, at 40,974.97 points on Wednesday.

The S&P 500 lost 8.86 points, or 0.16% while Nasdaq lost 52.00 points, or 0.30%.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.3% to 12,592.81.