Australian shares fell on Wednesday, weighed down by banks and miners, as hawkish signals in the Reserve Bank of Australia’s meeting minutes added to concerns about persistent inflation.
The S&P/ASX 200 index fell 0.6% to 8,731.50 by 0010 GMT, and was set to clock its worst day since October 1.
The benchmark ended flat on Tuesday.
Sentiment was dampened after the country’s central bank warned it still expects stubborn inflation to stay higher for longer, driven by excess domestic demand and higher global energy costs.
The warning left the door open to a fifth rate hike this year.
Inflation concerns grew further as investors weighed the escalating Middle East conflict, including attacks on Saudi Arabia.
Adding to the pressure, Commonwealth Bank of Australia CEO Matt Comyn said at the bank’s annual general meeting that inflation in Australia remains too high, even as growth slows and higher interest rates ease price pressures.
That bled into banks, which slipped 1.5%, set for their worst day since the start of October, with all the “Big Four” banks down between 1.5% and 2.5%.
Miners were down 0.2%, hurt by weakening copper prices.
Rio Tinto, the world’s largest iron ore producer, posted its third-quarter production update, topping estimates, and said it was on track to spend about $5 billion in capital by the end of 2026.
Rio’s shares were down 0.5%.
Global rival Glencore’s shares, started trading on the bourse on Wednesday, as the company seeks to tap investor demand for copper exposure. Gold miners fell 0.8%, hurt by weakening bullion prices.
Tech stocks slipped 0.2%, after the Nasdaq fell overnight.
Tech majors WiseTech Global and Xero fell 0.7% and 1.2%, respectively.
Bucking the trend, energy stocks gained 0.7%, with sector majors Woodside Energy and Santos up 0.7% and 1.8%, respectively.