Australian shares fall for fourth day as miners, tech drag

AUSTRALIAN shares ended lower for the fourth straight session on Tuesday (Jun 23), dragged down by losses in mining and technology stocks, while investors awaited monthly inflation and jobs data due later this week.

The S&P/ASX 200 index fell 0.3 per cent to close at 8,787 and has lost around 2 per cent over the last four sessions.

The mining sub-index slipped 1.5 per cent to its lowest since June 12, tracking iron ore prices, which extended declines to a nearly four-month low, weighed down by prospects of rising shipments from major suppliers and seasonally sagging steel demand.

BHP Group and Fortescue slipped 0.7 per cent and 1.7 per cent, respectively.

Gold stocks followed suit, dropping nearly 3 per cent as the dollar strengthened on expectations of a Federal Reserve interest rate hike this year.

Northern Star Resources and Evolution Mining lost between 2 per cent and 3 per cent each. “The stronger US dollar, driven by higher rate expectations, left the Materials sector particularly exposed given the negative correlation between the greenback and metals prices,” said IG market analyst Tony Sycamore.

Tech stocks dropped 4 per cent, led by a more than 4 per cent decline in Wisetech Global. The logistics software firm widened its losses despite saying it was unaware of any investigation into its executive chairman, Richard White.

Meanwhile, financials gained 0.6 per cent ahead of Wednesday’s May inflation print. Annual pace of inflation jumped in the first quarter, moving further above the Reserve Bank of Australia (RBA) target band of 2 per cent to 3 per cent.

The central bank held its cash rate steady at its last meeting earlier this month and is next scheduled to meet in August.

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“The September quarter CPI data would be more important to interest rate expectations,” said Philip Pepe, a senior equities analyst at Shaw and Partners. Markets will also be looking at the May jobs print due on Thursday.

Energy stocks slipped 0.7 per cent as oil prices eased after signs of some progress in restoring crude flows through the Strait of Hormuz. In New Zealand, the benchmark S&P/NZX 50 index closed flat at 13,435.77. REUTERS