Australia: Shares fall ahead of likely RBA rate hike

AUSTRALIAN shares fell on Tuesday (Aug 2) as market participants braced for a near-certain hike in interest rates, with losses in mining and energy stocks outweighing gains in technology and banking heavyweights.

The S&P/ASX 200 index slipped 0.5 per cent to 6,959.0 by 12.25 am GMT and was on track to snap 5 straight sessions of gains.

Among global markets, Japan's Nikkei fell 0.9 per cent, while S&P 500 E-minis futures slipped 0.2 per cent.

With inflation soaring to a 21-year high of 6.1 per cent last quarter, the Reserve Bank of Australia (RBA) is expected to deliver a third consecutive 50-basis-point interest rate hike later in the day to get inflation within a preferable 2-3 per cent range.

Miners were the top laggards for the day, declining more than 1 per cent. Heavyweights BHP Group, Rio Tinto and Fortescue Metals Group dropped between 1.3 per cent and 3.1 per cent.

Energy stocks also fell after oil prices sank about 4 per cent overnight as weak manufacturing data clouded the demand outlook.

Sector majors Santos and Woodside Energy Group slipped 1 per cent and 0.8 per cent, respectively.

Technology stocks gained 0.7 per cent, with ASX-listed shares of Block Inc adding 2.4 per cent, while Xero rose 0.6 per cent.

Financials inched higher, with 3 of the so-called "big four" banks trading in positive territory.

SEE ALSO

Australia: Shares end at 7-week high ahead of RBA meeting

Gold Stocks edged higher after bullion prices hit 1-month highs on a weaker US dollar. Newcrest Mining, Australia's largest gold miner, rose 0.5 per cent.

Across the Tasman Sea, the benchmark S&P/NZX 50 index fell 0.2 per cent to 11,503.09. REUTERS