Australian shares inch lower as banks and miners drag

Australian shares inched lower on Wednesday, as losses in banks and miners outweighed gains in gold and energy stocks, while a survey showing a sharp drop in October consumer sentiment also weighed on risk appetite.

The S&P/ASX 200 index slipped 0.3% to 8,710.00 by 0028 GMT, after closing 0.6% higher on Tuesday.

The Westpac-Melbourne Institute survey showed consumer sentiment slumped for a second straight month in October, as higher borrowing costs following Reserve Bank of Australia (RBA) tightening squeezed household finances and deepened cost-of-living pain.

“With oil above US$100 and long-end yields near multi-decade highs, the overarching macro environment remains tight,” said Tapas Strickland, chief market strategist at Moomoo Australia and New Zealand.

“For Australian investors, the key test is whether global momentum can broaden before household strains hit corporate earnings.”

Markets see a 75.7% chance the RBA leaves rates unchanged in November, compared with a 24.3% chance of another increase.

Focus now turns to minutes from the central bank’s last meeting, due next week, for policy clues.

Banks slipped 0.3% after a three-day winning streak, with the “Big Four” all trading in negative territory.

Miners fell slightly, with heavyweights BHP Group and Rio Tinto down 0.5% each.

Gold stocks rose 1.9% and were on course for their best day in a week, buoyed by higher bullion prices. Gold miners Evolution Mining and Northern Star Resources jumped 1.6% and 2.4%, respectively.

Energy stocks climbed 0.2%, with sector majors Woodside Energy and Santos both up 0.5%.

Tech stocks were up 0.3%, lifted by Wall Street’s record high close overnight, while healthcare stocks rose 0.5% and real estate firms stayed flat.

New Zealand’s benchmark S&P/NZX 50 index was steady at 13,708.07.