Financials, miners drag Australia shares lower; inflation data in focus

Wildcat Resources

24/06/2024 08:15

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      ASX 200 marks worst session in 2-weeks
    

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      Miners at over 1 1/2 year lows 
    

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      CPI data due on Wednesday
    

  
    By Megha  Rani
       June 24 (Reuters) - Australian shares closed lower on
Monday, led by losses in miners and financials, while caution
prevailed ahead of a crucial domestic inflation reading due
later in the week that will likely provide cues on the central
bank's rate easing policy. 
    The S&P/ASX 200 index  .AXJO  closed 0.8% lower at 7,733.7
points. The benchmark clocked its biggest intraday percentage
loss since June 11.
    Investors keenly await May's consumer price inflation, due
on Wednesday, as the Reserve Bank of Australia resorted to a
hawkish hold in interest rates and also reiterated that it was
open to hikes in the future due to sticky inflation. 
    "Any upside surprise (for May CPI), even marginally, could
become the final straw to trigger an even tighter monetary
policy set-up for the foreseeable future," said Hebe Chen,
market analyst at IG Markets.
    Interest rate-sensitive financial stocks  .AXFJ  dropped
0.6%, with the "Big Four" banks down between 0.3% and 1%.
    Miners  .AXMM  lost 1.5% to mark their lowest level since
Nov. 2022 as iron ore prices tumbled due to demand concerns in
top consumer China.  IRONORE/ 
    Majors BHP Group  BHP.AX , Rio Tinto  RIO.AX  and Fortescue
 FMG.AX  declined between 0.1% and 0.8%. 
    Healthcare firms  .AXHJ  followed suit to drop 1.6%, with
sector leader CSL Ltd  CSL.AX  giving up as much as 0.9%. The
sub-index logged its worst session since May 17. 
    Depository shares of U.S.-based ResMed Inc  RMD.AX  lost
13.2%. 
    "The healthcare sector is shaken by the tumble of sleep
apnoea device manufacturer ResMed, whose core market is under
serious threat from the advent of weight-loss drugs," Chen
added.
   Energy stocks  .AXEJ  fell 1.9% to their worst session since
May 1, after crude oil prices extended losses.  O/R 
    Woodside Energy  WDS.AX  and Santos  STO.AX  dropped 2% and
1.6%, respectively.
  New Zealand's benchmark S&P/NZX 50 index  .NZ50  fell 0.5% at
11,627.86 points at the close of the trade.

 (Reporting by Megha Rani in Bengaluru; Editing by Janane
Venkatraman
)
 ((Megha.Rani2@thomsonreuters.com;))