Australian shares fell on Tuesday dragged lower by financial and gold stocks, as investors priced in a high likelihood of the country’s central bank tightening interest rates in its policy meeting due later in the day.
The S&P/ASX 200 index fell 0.2% to 6,981.9 by 0015 GMT, snapping a five-day rally. The benchmark had ended 0.3% higher on Monday.
Investors are focussed on the Reserve Bank of Australia’s (RBA) interest rate meeting due at 0330 GMT.
The RBA will most likely increase rates by 25 basis points this time, according to a Reuters Poll, as the central bank tries to fight higher-than-expected inflation.
Globally, investors are also eyeing upcoming policy speeches by at least nine US Federal Reserve members during the week, including the Chair Jerome Powell on Nov. 9 for further clues on Fed’s monetary policy.
In Sydney, rate-sensitive financial stocks fell 0.9%, after five sessions of gains.
The “big four” banks slipped between 0.6% and 2.3%. Gold stocks slumped 1.3% tracking subdued bullion prices. Sector major Northern Star Resources slipped about 0.1%.
Technology stocks, however, bucked the trend, edging 0.2% higher, in line with overnight gains in their Wall Street peers.
Australian shares rise on gold, healthcare boost; RBA meeting in focus
Australian shares of Block advanced 0.1% and WiseTech Global rose 0.9%.
Shares in Origin Energy rose 0.8%, after a proxy advisory firm Institutional Shareholder Services (ISS) recommended investors to vote in favour of a Brookfield-led consortium’s $10.5 billion bid for the power producer.
The New Zealand benchmark S&P/NZX 50 index rose 0.4% to 11,210.73.
Air New Zealand said engine maintenance schedule changes of RTX’s Pratt & Whitney could have a significant impact on the airline’s services for up to two years.
The flagship carrier’s shares fell 0.7%.
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