July 29 (Reuters) – Australian shares slid on Tuesday as miners and financial stocks weighed on the benchmark, while investors await the local inflation data due on Wednesday.
The S&P/ASX 200 index dropped 0.3% to 8,672.8 points by 0040 GMT. It had closed 0.4% higher on Monday.
The domestic quarterly inflation report is likely to provide guidance to investors on whether the Reserve Bank of Australia would tilt towards a rate cut at its meeting next month.
The last rate cut was in May, when the central bank lowered it by 25 basis points to 3.85%.
On the Sydney bourse, investors tread cautiously with heavyweight financials spearheading a dip in equities.
The sub-index fell about 0.7% to record its steepest intraday percentage fall in a week. The country’s “big four” banks were down between 0.8% and 1.1%.
Miners slipped as much as 0.9% to their lowest level since July 21, and were set for their fourth straight session of losses as iron ore prices tumbled.
Minerals producer Liontown Resources shed over 1% after reporting a sequential drop in its quarterly revenue.
Gold stocks piled on the losses, falling about 1.4% to hit their lowest level since July 9, as bullion prices took a hit following the U.S.-European Union trade accord that lifted the dollar and risk sentiment.
Bucking the trend, however, were energy stocks that rose 0.6% as oil prices extended gains, lifted by hopes of improved economic activity after the U.S.-EU deal.
Woodside Energy rose 1.3% to hit its highest level since June.
Separately, the company said it will take over operatorship of the Bass Strait oil and gas assets from ExxonMobil, unlocking an estimated $60 million in synergies.
New Zealand’s benchmark S&P/NZX 50 index fell 0.2% to 12,882.22 points.
(Reporting by Adwitiya Srivastava in Bengaluru; Editing by Harikrishnan Nair)
