Australian shares fell on Thursday as investors reacted to signals from the US Federal Reserve regarding a potential rate hike later in the year.
The S&P/ASX 200 Index dropped 0.62%, or 55.20 points, to close at 8,911.10.
The US Federal Reserve left interest rates unchanged, but policymakers indicated they expected higher borrowing costs later in the year. On Wall Street, the Nasdaq Composite fell 1.3%, and the S&P 500 was down 1.2%.
The US and Iran released the text of an agreement, which extends a ceasefire declared in April by another 60 days to allow the two countries to negotiate a final deal. Brent crude oil futures traded around $78 per barrel.
On the domestic front, advertised salaries in Australia recorded a 0.3% month-on-month increase in May, pointing to sluggish growth in recent months, according to the SEEK Advertised Salary Index.
Job ads in Australia in May fell 0.8% month on month and 4.5% year on year, while applications per job ad rose 3.6% month on month and are now 5.5% higher year on year, according to a report by Seek.
In company news, Washington H. Soul Pattinson (ASX:SOL) has agreed to divest its interest in certain Brickworks (ASX:BKW) property division industrial joint venture (JV) trust assets to Goodman Australia Industrial Partnership and related Goodman Group (ASX:GMG) entities for AU$1.89 billion under a binding agreement.
Challenger (ASX:CGF) entered a binding agreement to combine its Fidante multi-affiliate funds management business with Channel Capital, creating a new entity to be named Channel Group. Fidante will merge with Channel Capital under Channel Group to form an active investment platform managing roughly AU$150 billion across equities, fixed income, and alternative assets.
Lastly, Rio Tinto Group's (ASX:RIO) Oyu Tolgoi unit in Mongolia has resumed regular concentrate export shipments. The Oyu Tolgoi copper and gold deposit is jointly owned by the government of Mongolia, which has a 34% stake, and Rio Tinto, which owns the remaining 66%.