AUS
NZ
UK
CA
USA
IND
Highlights
- ASX 200 Edges Lower: The S&P/ASX 200 index fell 0.2% to 8,268.2 points, snapping a four-day winning streak.
- Banking Stocks Drag: Domestic banks dropped 0.6%, offsetting gains in mining and energy sectors.
- Inflation Data in Focus: Markets await November CPI figures, with expectations of a 2.2% rise influencing interest rate forecasts.
Australian shares opened lower on Wednesday, halting a four-day rally as declines in the banking sector overshadowed gains in mining and energy stocks. The S&P/ASX 200 index slipped 0.2% to 8,268.2 points by 2332 GMT, after rising 0.3% in the previous session.
Investors are closely watching the release of November inflation data, with economists surveyed by Reuters predicting a 2.2% increase in the consumer price index, slightly higher than October's 2.1%. The data will shape expectations for the Reserve Bank of Australia's (RBA) monetary policy, which has kept interest rates steady at 4.35% for over a year.
While traders see a 73% chance of a 0.25% rate cut in February, an uptick in inflation could prompt the RBA to maintain current rates.
Banking stocks weighed heavily on the index, with the "Big Four" banks—Commonwealth Bank, Westpac, ANZ, and NAB—falling between 0.4% and 0.6%. Higher interest rates, though historically favorable for banks, are slowing credit growth and affecting mortgage repayments.
On a brighter note, domestic miners rebounded, rising 0.7% after three consecutive sessions of losses. Sector leaders Rio Tinto, BHP, and Fortescue climbed between 0.8% and 1.4%. Gold stocks surged 1.9%, buoyed by higher bullion prices as the U.S. dollar weakened.
Energy stocks extended their rally, with the sub-index gaining for the eleventh straight session. Woodside Energy and Santos saw modest gains of 0.6% and 0.1%, respectively, as oil prices climbed on supply concerns.
Meanwhile, New Zealand's S&P/NZX 50 index declined 0.3% to 13,008.31 points, marking its second consecutive session of losses.
As inflation data looms, Australian markets remain poised for potential shifts in monetary policy and sectoral dynamics.
