Dec 17 (Reuters) – Australian shares slipped for a third consecutive session on Wednesday, pressured by banks and miners, as traders digested the prospect of a rate hike next year following recent hawkish comments from the Reserve Bank of Australia.
The S&P/ASX 200 index was down 0.3% at 8,569.70 points, as of 2327 GMT. The benchmark closed 0.4% lower on Tuesday.
The country’s central bank flagged a possible interest rate hike if inflationary pressures persist, as it kept the key cash rate steady at its December meeting.
Financials slipped nearly 1%, marking their steepest intraday drop in more than two weeks.
Top lender CBA fell 1%, while the other three of the “Big Four” banks dropped between 0.1% and 0.8%.
Commonwealth Bank of Australia and National Australia Bank, two of the country’s major lenders, now expect a February rate hike as the inflation rate accelerates in a capacity-constrained economy.
Miners slipped around 0.2%, pressured by lower copper prices in the previous session.
Major sub-index players BHP and Fortescue slid 0.3% and 0.9% respectively, while Rio Tinto gained 0.2%.
Energy sub-index slipped 1.6%, marking a third consecutive session of losses and hitting its lowest level since October 23. Sector heavyweights Santos and Woodside Energy dropped 1.3% and 2%, respectively.
Among individual stocks, Treasury Wine Estates declined as much as 16.8% to its lowest point since January 21, 2015. The luxury winemaker cancelled the remaining portion of its share buyback programme and sharply downgraded its first-half fiscal 2026 earnings.
New Zealand’s benchmark S&P/NZX 50 index fell 0.2% to 13,391.51 points.
The country’s top central banker said the official cash rate was likely to remain low through next year, countering markets expectations of two rate hikes next year. (Reporting by Keshav Singh Chundawat in Bengaluru; Editing by Sherry Jacob-Phillips)
