Banking stocks drag Australia shares lower on inflation anxiety



Nov 17 (Reuters) - Australia shares dipped on Wednesday, dragged lower by financials with Commonwealth Bank of Australia leading the losses after the top lender flagged margin pressure, while resource-related stocks were subdued on weaker commodity prices.

The benchmark S&P/ASX 200 index .AXJO was down 0.2% at 7409.100 points, as of 1121 GMT. The benchmark closed 0.7% lower on Tuesday.

Commonwealth Bank of Australia CBA.AX dropped 7.6% to mark its worst session since March 2020 after it signalled that fierce competition was hurting its margins. The country's biggest lender lost about A$14 billion in market cap since its last close on Tuesday.

The broader financials index .AXFJ shed as much as 2.6% in its biggest one-day percentage fall in more than six weeks, with the other three "Big Four" banks also trading in the red amid broadening inflationary pressures.

Miners .AXMM dropped 0.8% on weaker iron ore and copper prices, dragged lower by heavyweight miner BHP Group BHP.AX , down over 1%.

Australian gold stocks .AXGD retreated 1.8% to deliver their worst day in more than two weeks as a firmer greenback made bullion more expensive for holders of other currencies.

Gold miner Pantoro Ltd PNR.AX fell 4.8% to be the top percentage loser in the sub-index.

Bucking the trend, tech stocks .AXIJ tracked their U.S. peers higher to head towards their fourth straight session of gains, with index major Afterpay Ltd APT.AX adding up to 2.4% to be the top performer.

All major indexes closed higher on Wall Street after the U.S. October retail sales data signaled solid consumer health.

Across the Tasman sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.2% to 12,881.900 points to hit its lowest level in nearly three months.

Software maker Vista Group International Ltd VGL.NZ and Vital Healthcare Property Trust VHP.NZ were among the worst performers on the NZX 50.

In other markets, the S&P 500 E-minis futures EScv1 were up 0.04%.
Reporting by Yamini C S; Editing by Sherry Jacob-Phillips

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.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.