Australian shares started the week lower on Monday, as miners weighed on the benchmark index due to falling iron ore prices, while investors awaited crucial US inflation print later in the week.
The S&P/ASX 200 index fell 0.3% to 7799.00 by 0015 GMT.
The benchmark fell 0.1% on Friday.
Miners dropped 0.8%, as iron ore prices fell on falling hot metal output weighing on sentiment.
Heavyweight miners BHP Group and Fortescue fell 0.8% and 1.4%, respectively. Globally, investors await US inflation data for June to gain a better understanding of the Federal Reserve’s interest rate trajectory, after recent jobs data boosted market expectations of a rate cut.
US jobs data released on Friday, showed unemployment reached a 2-1/2-year high, signalling towards a veering labour market that keeps the Fed on course to start cutting rates soon.
Back in Sydney, energy stocks lost 0.6%, eyeing their worst day since June 27, after oil prices declined as likelihood of a ceasefire agreement in Gaza began to outweigh the summer’s high demand for fuel and the risk of supply disruptions from storms in the Gulf of Mexico.
Top energy producer Woodside Energy fell 0.4%, while Santos declined 0.8%. Financials fell 0.2%, tracking the broader index, with the country’s biggest lender Commonwealth Bank of Australia down 0.3%.
Miners lead Australian shares higher
Bucking the trend, gold stocks rose as much as 1.9% to hit their highest level since June 11 and the sub-index was set to rally for a fifth consecutive day, as bullion prices rose after recent US jobs report solidified expectations of a September rate cut.
In New Zealand, the benchmark S&P/NZX 50 index fell 0.5% to 11,730.42.
Comments