Australian shares fell on Wednesday, led by losses in heavy-weight miners and financials, with investors focused on the upcoming release of US inflation data and the Federal Reserve’s policy announcement.
The S&P/ASX 200 index fell 0.5% to 7,720.1 by 0035 GMT. The benchmark touched its lowest in over a week.
In addition to the US inflation data, which could influence the timing of the Fed’s monetary policy easing, traders are on the watch for the outcome of the central bank’s two-day policy meeting, due later in the day.
Back in Sydney, the Reserve Bank of Australia’s two-day monetary policy meeting is scheduled for next week.
“We now expect the first cash rate cut (by the RBA) in February 2025 and expect easing shortly thereafter (most likely in April, although May is possible),” analysts at ANZ Research said in a note.
Mining stocks fell as much as 1.1% to their lowest since March 27, on the back of falling iron ore prices.
Mining giants Rio Tinto and Fortescue shed as much as 1.3% and 1.4%, respectively.
Meanwhile, Australia’s mining and energy union said it has filed for same job same pay orders covering 1,700 labour-hire coal mine workers at three large BHP coal mines in Queensland.
BHP shares fell as much as 1.5% to their lowest since May 14. Rate-sensitive financial stocks fell as much as 0.6%, with the “Big Four” banks losing between 0.4% and 0.7%.
Australian shares hit record high; RBA cautious on inflation
Gold stocks fell as much as 0.8% to their lowest level since early April, even as bullion prices firmed.
Bucking the trend, energy stocks gained as much as 0.6%, tracking higher oil prices.
Energy majors Woodside Energy and Santos gained as much as 1.6% and 0.7%, respectively. Across the Tasman Sea, New Zealand’s S&P/NZX 50 index fell 0.1% to 11,776.64 points.
The benchmark is set to log losses for a fifth straight session.
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