Australian shares slip as banks outweigh mining gains; inflation data in focus

Australian shares slid on Tuesday as losses in financials outweighed gains in mining stocks, boosted by stronger copper prices, while investors awaited quarterly inflation data for clues on the central bank’s next policy move.

The S&P/ASX 200 index fell 0.3% to 8,783.00, as of 0036 GMT.

The benchmark gained 0.2% on Monday. Markets are focused on Wednesday’s quarterly inflation print for clues on the Reserve Bank of Australia’s key cash rate decision next week.

Swaps imply nearly a 65% chance the central bank will hike rates a fifth time this year at its November 3 meeting.

Rate-sensitive financials slid 0.9%, heading for its steepest drop in nearly two weeks.

All the “Big Four” banks fell between 0.8% and 1.2%. Healthcare stocks fell 0.7%, on track for their worst session since October 2.

CSL and Cochlear dropped 1% and 1.5%, respectively. Casino operator Star Entertainment swung to quarterly profit on strong performances at its Sydney and Gold Coast operations.

The firm’s shares jumped up to 21.7%, marking the biggest intraday gain in 11 months.

Heavyweight miners advanced 1.1%, tracking firmer copper prices.

Rio Tinto and BHP advanced 1.3% and 1.7%, respectively. Gold stocks added 0.3% as bullion prices rose on Monday.

Energy stocks inched 0.3% higher, despite a slight fall in crude prices as they hovered around their six-month highs due to persistent attacks on Saudi Arabia.

Santos and Woodside Energy added between 0.6% and 0.5%, respectively.

New Zealand’s benchmark S&P/NZX 50 index fell 0.8% to 13,619.15, set for its worst session in more than three weeks.

Investors’ focus has shifted to Wednesday’s central bank decision, with over 80% of economists expecting the Reserve Bank of New Zealand to hike the cash rate by a quarter point, according to a Reuters poll.