Australia: Shares set for worst day in nearly three months as banks, miners drop
[BENGALURU] Australian shares dropped the most in nearly three months on Wednesday, tracking overnight Wall Street losses, with banks and miners weighing heavily on the benchmark index.
The S&P/ASX 200 index fell 1.7 per cent to 6,943.9 by 0037 GMT, snapping a three-day winning streak, and was on track to mark its worst session since Feb 26. The benchmark rose 0.6 per cent on Tuesday.
Major indexes on Wall Street fell overnight, as a sharp decline in telecom stocks and weak housing starts data overshadowed strong retail earnings.
Investors now await minutes from the US Federal Reserve's April policy meeting later in the day. Rising inflationary pressure in the United States has been increasing investor speculation that the Fed could possibly raise interest rates sooner than anticipated.
A measure of Australian consumer sentiment fell in May to break a three-month winning streak, with the measure of family finances compared with a year ago down 5.4 per cent.
Among sectors, miners fell as much as 2.8 per cent, even as Chinese ironore futures rose overnight.
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Global miner Rio Tinto fell 3 per cent, while larger peer BHP fell 2.5 per cent.
The heavyweight financial sector eyed its worst session in a week, with all the "Big Four" banks trading in the red.
Energy stocks were the biggest losers on the benhcmark index, snapping a four-session rally, as oil prices dropped overnight.
Woodside Petroleum fell 1.6 per cent, while Santos lost as much as 2.9 per cent.
Gold stocks also saw losses, with sector heavyweight Newcrest Mining on track to record its worst day in nearly three weeks.
New Zealand's benchmark S&P/NZX 50 index fell 0.7 per cent to 12,336.09.
Investors are awaiting the country's budget on Thursday, where the government is expected to unveil a smaller deficit and a more optimistic economic outlook.
REUTERS
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