Australia: Shares dragged by mining, gold firms; US inflation in focus

AUSTRALIAN shares fell for a fourth straight day on Wednesday, with mining and gold stocks leading the declines, as caution around US inflation data amid risks of sharp interest-rate hikes and a global recession weighed on equities. The S&P/ASX 200 index slid 0.5 per cent to 7,018.80 by 0035 GMT, after having ended 1 per cent lower on Tuesday. Markets have been volatile across asset classes as a combination of surging inflation and fears that monetary tightening aimed to tame inflation would slow down global economic growth. In Asia, Japan’s Nikkei shed 0.36 per cent and S&P 500 E-minis futures were up just 0.06 per cent. Domestic gold stocks dropped 2 per cent and marked a fourth consecutive losing session. Sector major Newcrest Mining fell 2.4 per cent. Bullion prices fell overnight as the dollar resumed strengthening and cautious investors shifted focus to the US inflation data due later in the day. Miners, too, were down for a fourth straight session as they tracked iron ore and base metal prices lower, to slump 1.4 per cent. Sector heavyweights BHP Group and Rio Tinto declined 1.2 per cent and 0.2 per cent respectively. Iron ore prices fell on Tuesday as the demand outlook was pressured by Covid-19 lockdowns in China. Energy stocks retreated 0.7 per cent as oil prices slumped, while financials lost 0.5 per cent. Bucking the trend, healthcare stocks rose 1 per cent and were the only gainers on the benchmark. Agribusiness firm Graincorp fell 2.6 per cent amid a weak broader market, even as it reported around five-fold jump in first-half profit. In New Zealand, the benchmark S&P/NZX 50 index was up 0.2 per cent at 11,256.12. REUTERS