Australian shares retreat in broad selloff ahead of US inflation print
Updates to close
Mining stocks, financials fall over 1% each
Mineral Resources shares hit 2-week low
CBA posts slightly better-than-expected results
By John Biju
Nov 13 (Reuters) - Australian shares retreated on Wednesday as investors remained wary of a rise in U.S. Treasury yields ahead of crucial inflation data from the world's biggest economy, which overshadowed Commonwealth Bank of Australia's results.
The S&P/ASX 200 index .AXJO closed 0.8% lower at 8,193.4 points, recording its third consecutive day of declines.
U.S. Treasury yields rose overnight as investors priced in President-elect Donald Trump's proposed policies of lower taxes and trade tariffs that are viewed as inflationary. US/
"Risk appetite in the ASX markets has notably compressed today as traders busily digest the red flags from the spike in yields ahead of the crucial U.S. CPI and Australia's unemployment report—both poised to reshape the trajectory of the RBA's monetary policy agenda," said Hebe Chen, a market analyst at IG Markets.
U.S. consumer price index data, due later in the day, will provide insights into Fed's rate cut path. Further rate cuts from the Fed will likely add more pressure for the RBA, which has lagged its peers in starting its rate cut cycle, to start rate cuts.
Commonwealth Bank of Australia CBA.AX reported first-quarter cash earnings slightly ahead of market consensus. However, its shares fell 0.5%, tracking a 1.1% decline in the broader financial index .AXFJ.
"CBA is extremely expensive and been pushed up by global funds due to size and liquidity. The result shows no growth over the year and yield is substantially lower than bonds. CBA is a sell like other three banks," said Mathan Somasundaram, CEO of Deep Data Analytics.
Meanwhile, shares of ANZ Group ANZ.AX retreated 4.1% as the company traded ex-dividend.
Mining stocks .AXMM retreated 1.2% while gold stocks .AXGD fell 0.5%.
Shares of Mineral Resources MIN.AX tumbled 7.2% to hit their lowest level since late October after the miner said it would put its Bald Hill lithium minein Western Australia under care and maintenance.
New Zealand's benchmark S&P/NZX 50 index .NZ50 retreated 0.6% to 12,674.49.
Reporting by John Biju in Bengaluru
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
