The S&P/ASX 200 Index (ASX: XJO) is having a rough start to the new financial year.
At the time of writing, the benchmark index is down 0.75% to 8,712 points.
That follows a softer finish to June, with the ASX 200 down 0.22% over the past month.
The pressure has carried into the start of FY27. The latest snapshot shows 115 shares falling, 79 rising, and 6 unchanged this afternoon.
Here's what is weighing on the market today.
Image source: Getty Images
Banks are doing the damage
The 'big four' banks are dragging heavily on the ASX 200.
Commonwealth Bank of Australia (ASX: CBA) shares are down 2.14% to $161.10, while National Australia Bank Ltd (ASX: NAB) shares are down 2.40% to $36.95.
Westpac Banking Corp (ASX: WBC) shares are also down 1.90% to $34.54, and ANZ Group Holdings Ltd (ASX: ANZ) shares have dropped 3.30% to $34.185.
That weakness has come despite a stronger Wall Street lead overnight. The S&P 500 Index (SP: .INX) and Nasdaq Composite Index (NASDAQ: .IXIC) finished 0.79% and 1.68% higher, respectively.
Back home, banks have been leading the falls, with consumer stocks, energy, and real estate also under pressure.
Supermarkets weigh on the market
Coles Group Ltd (ASX: COL) has been hit hard after confirming it is in discussions with TPG Telecom Ltd (ASX: TPG) about a possible acquisition of Greencross Pet Wellness.
Coles shares fell as much as 7.8% to $22.48 as investors weighed up the potential $4 billion price tag.
The supermarket giant also faced another ACCC setback after its planned Kalgoorlie-Boulder supermarket and liquor site acquisition was blocked by the regulator.
Woolworths Group Ltd (ASX: WOW) shares are down 2.50% to $39.03, while Wesfarmers Ltd (ASX: WES) shares are 1.11% lower at $89.395.
Resources are limiting the fall
To be fair, the decline would probably look a lot worse without some help from the resources sector.
BHP Group Ltd (ASX: BHP) shares are up 1.09% to $60.05, while Fortescue Ltd (ASX: FMG) shares are 0.24% higher at $19.195.
South32 Ltd (ASX: S32) has also been one of the stronger stocks on the ASX after agreeing to sell most of its aluminium assets to Alcoa Corporation (ASX: AAI) for up to US$5.6 billion.
The company is also planning to return US$500 million to shareholders through a special dividend once the transaction is complete.
Can the ASX 200 recover?
The rest of the session will depend on whether buyers are willing to step in near the day's lows.
Right now, the market is being pulled between the banks and supermarkets on one side, and stronger miners on the other.
If the banks keep sliding into the close, the ASX 200 may struggle to make much of a late recovery.
