Australian shares slip as bank losses outweigh mining gains
- The S&P/ASX 200 index fell 0.5% to 8,753.10
Australian shares fell as financial sector losses outweighed mining gains, with investors awaiting key inflation data for clues on the Reserve Bank of Australia's potential rate hike.
- Impact of upcoming inflation data on RBA's monetary policy.
- Performance of key sectors like financials, mining, and technology.
- Specific stock movements, including NEXTDC's decline.
Australian shares fell on Monday, with losses in financials outweighing gains in miners on stronger commodity prices, while investors focused on a key inflation print later this week for clues on the central bank’s next move.
The S&P/ASX 200 index fell 0.5% to 8,753.10 as of 0037 GMT, heading for its worst session since October 14. The benchmark ended slightly lower last week.
Investors await third-quarter consumer price inflation data, due on Wednesday, for cues on the Reserve Bank of Australia’s future monetary policy path.
Markets imply more than a 60% chance of a fifth rate hike this year, potentially taking the cash rate to 4.85% at the November 3 meeting.
Financials dropped 1.6%, set for their steepest drop since October 1.
All the “Big Four” banks slumped between 1.6% and 1.9%.
Technology stocks slipped as much as 2.5% to a more than six-month low, tracking weakness in Wall Street peers on Friday.
WiseTech Global and Xero fell 1.3% and 1.9%, respectively.
Narrowing losses, mining stocks advanced 1.4%, set to snap four consecutive loss sessions, tracking stronger iron ore and copper prices.
Both BHP and Fortescue gained more than 1.3%.
Adding to the sector’s advance, gold stocks rose as much as 2.1%, tracking firmer bullion prices. Evolution Mining , Northern Star Resources and Ramelius Resources jumped between 1.1% and 2.6%.
Energy stocks climbed 1.4% on higher oil prices, even as the commodity slid slightly on Monday.
Sector majors Santos and Woodside Energy gained 1.4% and 1.1%, respectively.
Among individual stocks, NEXTDC was one of the top losers on the benchmark, down more than 3%.
The data center operator said its CEO will give up his fiscal 2027 bonus opportunities after the firm downgraded its outlook last week.
Meanwhile, New Zealand markets were closed on Monday for a public holiday.