Australia shares are dragged down by mining and bank stocks; local job data is in focus

Investors remained cautious as they awaited the local jobs data, which is due on Thursday. This will be a crucial metric for gauging the central bank’s timeline to cut rates.

S&P/ASX 200 Index fell 0.3% at 8372.1 points as of 1124 GMT. The benchmark index fell by 0.4% on Monday.

Investors in Australia will assess local jobs data scheduled to be released on Thursday to gain additional insight into the Reserve Bank of Australia (RBA's) monetary policies timeline.

The central bank maintained the cash rate at 4.35%, but lowered its hawkish position on Tuesday. Markets now expect the next rate reduction in early 2025.

The U.S. Consumer Price Index report on Wednesday will also be closely watched by traders around the globe to gain a better understanding of the inflation trajectory and the Federal Reserve's upcoming policy meeting.

A survey of economists revealed that 90% expect the Fed to cut rates by 25 basis points at its meeting on December 18.

Heavyweight miners dropped 0.2% on the Sydney exchange, pulling the benchmark down.

South32, a miner with diversified interests, fell by as much as 4,1% and reached its lowest level since November 15, when civil unrest in Mozambique adversely affected its Mozal Aluminium Smelter.

Commonwealth Bank of Australia, Australia's largest lender, dropped 0.3%.

The energy stocks index fell by 0.4% in line with the overall index.

Woodside Energy (Woodside Energy) and Santos (Santos) both fell by 0.5% and 0.6% respectively.

Gold stocks rose 0.2%, bucking the trend as bullion prices surged.

The benchmark S&P/NZX50 index in New Zealand rose by 0.1%, to 12,731.4.

(source: Reuters)