Australian shares fell on Friday, as investors pushed back rate-cut bets with cooler-than-expected US growth coupled with a hotter local inflation data, while BHP Group fell after making a $38.8 billion buyout offer for mining major Anglo American.
The S&P/ASX 200 index fell 1.2% to 7,593.300 by 0050 GMT, with all but one sub-indexes trading in the red. The benchmark closed flat on Wednesday.
The Australian benchmark tracked Wall Street losses which fell on varied earnings, while tepid growth from the world’s largest economy dented hopes of an early Federal Reserve rate cut.
Worsening investor sentiment, Wednesday’s consumer price index of Australia rose at a higher pace than expected in the first quarter, further dampening hopes of a rate cut.
As of April 25, the market does not expect the Reserve Bank of Australia to cut interest rates at its May meeting, according to the RBA Rate Tracker.
Financials fell 1.4% with the “Big Four” banks falling between 0.8% and 1.6%.
Bellwether mining stocks lost 1.6% while mining behemoth BHP Group shed over 4% after making a $38.8 billion bid for Anglo American PLC.
The world’s largest miner is set to track its worst day since September 7, 2023 - if losses held.
Energy stocks fell 0.7%, with oil and gas giant Woodside Energy dropping 0.9%.
The sub-index is eyeing its worst week since week-ending Feb. 9.
Healthcare sector slipped 0.6%, with biotech giant CSL losing 1.92% Information technology firms fell 0.6%, while real estate stocks lost 1.9%.
Australian shares hit record high; RBA cautious on inflation
Bucking the trend, gold stocks surged as much as 3.8% as bullion prices went higher boosted by weakening of US dollar.
The sub-index would see its best day in over a month if the gains hold.
New Zealand’s benchmark S&P/NZX 50 index fell 0.5% to 11,888.7500.
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