Big bank blues

The S&P/ASX erased earlier gains to finish the session 0.2% lower at 8,818.8 points. Higher commodity prices overnight were not enough to compensate for the weakness seen in CBA.

The largest stock on the market touched a four-week low on 1Q margins softness and higher costs. CBA shares closed lower by 6.6%. 

The bank will release its household spending insights tomorrow; but today, the Westpac-Melbourne Institute consumer sentiment index showed a 12.8% surge, with economists expecting Christmas spending to be less restrained than last year.

It was a positive for the likes of Light & Wonder which surged 11% during the session. This might also have to do with competitor Jumbo Interactive flagging a lower dividend payout ratio and shedding 3%.

Elsewhere, Life360 was 5.2% lower on its expansion into advertising. The location-sharing app is set to acquire US-based Nativo for around US$120 million.

And with the US shutdown seemingly nearing a temporary end, investors will be on the lookout for potential data released overnight.