Australia's share market has drifted lower for a third session, with a rally in mining stocks unable to ballast weakness across all other sectors.
The S&P/ASX200 fell 13.7 points on Wednesday, down 0.16 per cent, to 8,585.2, as the broader All Ordinaries lost 6.4 points, or 0.07 per cent, to 8,874.2.
Raw materials was the only winner of 11 local sectors, up 1.6 per cent as gold stocks surged, while energy, financials, health care, consumer staples and IT stocks dragged the bourse lower.
Gold stocks stood out, underscoring crowded market positioning in safe-haven assets amid thinning risk appetite, Vantage senior market analyst Hebe Chen said.
"It reinforces an unusually cautious year-end tone, with traders increasingly bracing for heightened uncertainty into the new year rather than chasing late-cycle upside," Ms Chen told AAP.
Major miners BHP, Rio Tinto and Fortescue recovered from a lacklustre morning, up between 0.4 per cent and 1.6 per cent by the close, helped by an uptick in iron ore and copper prices.
Battery minerals also offered some sectoral support, as lithium producer Liontown and nickel, cobalt and copper miner IGO Limited surged more than 11 per cent each, outperforming the top-200.
Graincorp was at the other end of the table, tumbling more than 15 per cent after announcing a loss of up to $10 million as it divested its GrainsConnect Canada stake.
Droneshield was also suffering, losing almost 12 per cent as investors took profits on a two-session rally and as they mulled signs of a possible peace deal in Ukraine.
Treasury Wine Estates was relegated to a bargain bin or sorts with a 9.3 per cent drop, plummeting to almost 11-year lows early in the session after it slashed guidance and scrapped a buyback plan.
The rout in energy stocks continued as oil prices also buckled under the potential peace agreement, although crude rebounded during the session as the US announced a blockade on sanctioned Venezuelan oil tankers.
Woodside dropped 2.4 per cent to $23.42, while Santos took less of a hit after announcing the divestment of two non-core assets.
Elsewhere in the sector, coal miners were mixed but uranium stocks traded higher, with Deep Yellow up almost seven per cent after an update on its flagship Tumas project in Namibia.
The heavyweight financials sector edged lower as CBA fell 0.8 per cent to $153.86, as its big four competitors lost between 0.1 and 0.5 per cent.
Health care stocks were under continued pressure, down almost two per cent and the segment's traditionally defensive reputation doing little to find prospective buyers.
Consumer staples also sold off, down 1.3 per cent, while discretionaries lost 0.6 per cent as retailers braced for tougher times on the back of weaker consumer confidence figures released earlier in the week.
With the local bourse down 1.5 per cent since Monday and slightly lower for the month, time was running out for December to live up to its positive reputation, CommSec market analyst Steven Daghlian said.
"We've got eight trading days left - and two of those are shortened - through to the end of 2025," Mr Daghlian told AAP.
After Tuesday night's US jobs data poured water on hopes of a January Federal Reserve interest rate cut, investors would be watching Thursday's US November inflation data, now just eight days behind in the wake of the government shutdown.
"It's not the Federal Reserve's preferred measure, but if there is a surprise in either direction that could certainly still play a part in how the US market does in the tail end of the week," Mr Daghlian said.
The Australian dollar is buying 66.19 US cents, down from 66.33 US cents on Tuesday at 5pm as the greenback appreciated against the major currencies.
ON THE ASX:
* The S&P/ASX200 fell 13.7 points, or 0.16 per cent, to 8,585.2
* The broader All Ordinaries lost 6.4 points, or 0.07 per cent, to 8,874.2
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 66.19 US cents, from 66.33 US cents at 5pm AEDT on Tuesday
* 102.70 Japanese yen, from 102.70 Japanese yen
* 56.44 euro cents, from 56.45 euro cents
* 49.46 British pence, from 49.64 British pence
* 114.61 NZ cents, from 114.79 NZ cents
