Australia: Shares drop ahead of RBA policy meeting

AUSTRALIAN shares fell on Tuesday, as cautious investors awaited the outcome of the central bank’s policy meeting later in the day to see whether it hikes interest rate by the “usual” 25 basis points or more. The S&P/ASX 200 index was down 0.6 per cent at 7,161.40 by 0029 GMT. Most sub-indexes were also trading in red. Out of the 35 economists polled by Reuters, 22 forecast a quarter point move, 11 predicted a 40 basis point increase, one expected a 50 basis point hike and one went for no move at all. In other key markets, Japan’s Nikkei edged 0.1 per cent lower at 27,891.39 and S&P 500 E-minis futures fell 0.3 per cent. In Australia, financials slumped 0.9 per cent to hit a more than two-week low. The country’s four largest lenders retreated between 0.5 per cent and 1 per cent. The energy sub-index lost 0.4 per cent, after oil prices settled slightly lower. Sector majors Woodside Energy Group and Santos fell 0.6 per cent and 1.1 per cent, respectively. Gold stocks declined 1 per cent, following a fall in bullion prices. Newcrest Mining, Northern Star Resource and St Barbara lost 0.5 per cent to 1.2 per cent. Technology stocks dropped 0.9 per cent, with ASX-listed Block and Computershare falling 1.3 per cent and 0.5 per cent, respectively. On the upside, strong iron ore prices helped the metals and mining index inch up 0.1 per cent. Heavyweights BHP Group, Rio Tinto and Fortescue Metals Group rose between 0.1 per cent and 0.8 per cent. New Zealand’s benchmark S&P/NZX 50 index slipped 1 per cent to 11,301.71, its biggest drop since May 10 if losses hold. Sky Network Television slumped 7.2 per cent and was on track for its worst day in over 3 months after the broadcaster addressed media speculation regarding its possible acquisition of MediaWorks Holdings. REUTERS