Australian shares drifted in a narrow range on Tuesday, as mining behemoth Rio Tinto led losses among bellwether mining companies on missing second-quarter iron ore shipments estimates, which offset gains in banks’ stocks.
The S&P/ASX 200 index fell 0.1% to 8010.0 by 0031 GMT.
The benchmark ended 0.7% higher on Monday.
Rio Tinto fell as much as 2.6% to touch its lowest level since March 18, after the global mining giant reported lower-than-expected second-quarter iron ore shipments.
Local mining stocks fell 1.2%, as copper prices eased on Monday on weak demand prospects in top consumer China. BHP dropped as much as 1.8%, its lowest level since July 1, while Fortescue shed 0.9%.
Energy stocks fell 0.2% on oil prices edging lower on worries of slowing China demand.
Bucking the trend, rate-sensitive financials sub-index rose 0.4%, with the “Big Four” banks rising between 0.1% and 0.8%.
Globally, investors digested comments from Federal Reserve Chair Jerome Powell, who said on Monday that the three US inflation readings over the second quarter of 2024 do “add somewhat to confidence” that the pace of price increases is returning to the Fed’s target sustainably.
The comment strengthened expectations for an interest rate cut as early as September, which in turn could also influence the Reserve Bank of Australia’s stance on rate cuts.
Australian shares hit record high as banks and miners gain
The RBA would next meet on Aug. 6. Gold stocks also gained 0.4% tracking a rise in bullion prices.
Gold miner Northern Star Resources were up more than 1%.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index were flat at 12,123.36.
Investors now await inflation data due later in the week for cues on the central bank’s next move.
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