Australian shares flat as banks offset mining drag; inflation data eyed
June 25 (Reuters) - Australian shares were largely unchanged on Wednesday as a rise in banks offset a drag in miners and energy stocks, while local investors awaited key inflation data, due later in the day.
The S&P/ASX 200 index was flat at 8,553.0 points by 0052 GMT. The benchmark ended 1% higher on Tuesday.
Markets stayed cautious before the release of monthly inflation data for May in order to gauge the interest rate trajectory from the country's central bank.
The Reserve Bank of Australia is set to announce the next cash rate decision on July 8, with traders pricing in an 89% probability of a 25-basis-point decrease in rates, according to the RBA Watch tool.
Energy stocks fell for a second consecutive session, declining 0.4% as oil prices weakened while investors assessed the stability of a ceasefire between Iran and Israel.
Woodside lost 1.1% and smaller peer Santos was flat.
Miners declined 1.3% on easing iron ore prices amid strengthening supply outlook from Australia.
Mining giants BHP and Rio Tinto fell 0.8% and 0.3%, respectively.
Gold stocks slumped 2.3% as well on weaker bullion prices as the ceasefire announcement dented safe-haven demand.
Gold miner Northern Star Resources emerged as the top loser on the benchmark, falling 2.7%.
Financials rose 0.6%, offsetting declines on the benchmark, with the "Big Four" banks rising between 0.5% and 1.3%.
Among company news, shares of Xero went on a trading halt as it said it would buy U.S.-headquartered fintech firm Melio for an upfront consideration of $2.5 billion.
Shares of the country's bourse operator ASX rose 0.9% after it announced changes to its board committee structure to sharpen the focus on risk management.
Meanwhile, New Zealand's benchmark S&P/NZX 50 index rose 0.1% to 12,484.46 points.
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Alan Barona)
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