Australian shares snapped a five-day winning streak on Thursday, dragged down by financials and miners, as investor mood soured globally after minutes of the Federal Reserve’s last meeting reflected tangible concerns about rate cuts this year.
The S&P/ASX 200 index fell 0.5% to 8,307.5 points by 2336 GMT.
The benchmark rose 0.8% on Wednesday.
US central bank officials at the December 2024 meeting raised new inflation concerns under the incoming Donald Trump administration, minutes released on Wednesday said in a language that suggested a relatively high bar for further cuts for now.
Core inflation in Australia slowed to 3.2%, closer to the local central bank’s target band of 2-3%, data on Wednesday showed, bolstering the case for a rate cut from the Reserve Bank of Australia as early as next month.
Local banks that have historically benefited from higher-for-longer interest rates dropped 0.4%, snapping a five-day gaining streak.
The Commonwealth Bank of Australia, which accounts for just over 10% of the benchmark index, dipped 0.9% after hitting a record high on Wednesday.
Miners fell 0.5% as iron ore prices declined for the fourth straight session after top consumer China’s latest stimulus measures disappointed investors.
Australian shares fall as miners offset real estate and healthcare gains
Sector majors BHP, Rio Tinto and Fortescue fell between 0.3% and 0.9%.
Energy stocks extended losses to a second session following the broader negative trend and falling oil prices, with Woodside Energy and Santos shedding 1.1% and 0.4%, respectively.
Gold miners bucked the trend to rise 1.3% as bullion prices hit a near four-week high, with sub-index leaders Northern Star Resources gaining 2% and Evolution Mining adding 1.3%.
New Zealand’s benchmark S&P/NZX 50 index slid 0.2% after slipping as much as 0.5% in early trade, extending losses to a third consecutive session.
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