Australia: Shares flat as miners, banks negate gains in gold stocks

[BENGALURU] Australian shares held steady on Wednesday after two straight sessions of falls, as gains in gold stocks countered losses in heavyweight miners and financials.

The S&P/ASX 200 index rose 0.04 per cent to 7,283.7 by 0024 GMT after a 0.3 per cent dip on Tuesday.

Wall Street closed lower overnight on jitters ahead of the quarterly corporate earnings season and minutes from the US Federal Reserve's last policy meeting.

Investors are awaiting inflation data from the United States and China due later this week, with expectations for high readings that will add pressure on central banks to tighten monetary policies.

Financials fell 0.7 per cent, led by a 4 per cent drop in Bank of Queensland after the lender warned its net interest margin would decline by 5-7 basis points in the coming year due to stiff competition and low interest rate environment. The 'big four' banks skidded between 0.7 per cent and 1.4 per cent.

Miners skidded 0.46 per cent, tracking a retreat in iron ore prices as investor focus shifted back to steel production controls in China. BHP Group, Rio Tinto and Fortescue Metals declined between 0.6 per cent and 2.1 per cent.

Gold stocks climbed 0.95 per cent as bullion prices rose overnight with rising inflation fears weighing on risk appetite and boosting demand for the safe-haven metal.

Gold miners Calidus Resources and Red 5 led the gains on the sub-index, advancing 7.6 per cent and 3.9 per cent respectively.

New Zealand's benchmark S&P/NZX 50 index was down 0.18 per cent to 12,996.3. Elsewhere, S&P 500 E-minis futures were down 0.27 per cent.

REUTERS