Australian shares dropped more than 1% on Tuesday amid broad-based selling, with banks and commodities leading the losses, while investors remained nervous about whether the economy can weather tighter monetary conditions at home.

The S&P/ASX 200 index was down 1.1% at 7,901.5 points, as of 0023 GMT.

The benchmark closed 0.9% higher on Monday.

Australia’s June-quarter consumer price data is due on Wednesday.

Inflation is likely to have accelerated to 3.8% from 3.6% in the prior quarter, fuelling concerns the Reserve Bank of Australia could hike interest rates when it meets on Aug. 6.

Banks lost 1.1% and were the top losers in the benchmark index on fears of a potential rate hike.

Shares of Commonwealth Bank of Australia, the country’s largest lender, dropped nearly 1%. Miners slumped 1.8% with sector majors BHP Group , Rio Tinto and Fortescue dropping 1.4%, 1.1% and 8.8%, respectively.

BHP and Canadian miner Lundin Mining announced plans to take over copper miner Filo Corp for $3.25 billion.

Chinese iron ore futures on the Dalian Commodity Exchange edged 0.1% lower.

Energy companies were trading 0.9% lower following a slump in global oil prices.

Shares of Woodside and Santos dropped 1.1% and 1%, respectively. Brent crude futures fell 0.2% to $79.60 a barrel while US West Texas Intermediate (WTI) crude lost 0.24%.

Australian shares hit record high; RBA cautious on inflation

Australian gold stocks dropped 1.2% as bullion prices were trading 0.1% lower at $2,381.20.

The US S&P 500 index and the Nasdaq were mostly flat on Monday.

S&P 500 E-minis futures were down 14 points.

US Dow Jones Industrial Average fell 0.12% at 40,539.93 points.

The yield on benchmark 10-year Treasury notes rose to 4.1783%, compared with its US close of 4.178%.

The Aussie dollar was trading 0.06% stronger against the greenback at A$0.65 on Tuesday.

New Zealand’s benchmark S&P/NZX 50 index jumped 0.6% to 12,392.6 points.