Banks drag Australian shares lower, CBA tumbles nearly 5%
The S&P/ASX 200 index slipped 0.4% to 8,850.10 by 0059 GMT.
The benchmark index rose 0.4% to a record close of 8,880.80 on Tuesday, after the Reserve Bank of Australia reduced interest rates by 25 basis points, as widely anticipated, while signalling further policy easing could be on the cards.
Top lender Commonwealth Bank of Australia declined nearly 5% on Wednesday, hitting its lowest level since mid-May and pulling the banking sub-index 1.8% lower to its weakest point since August 5.
CBA, considered one of the most expensive banks in the world on a price-to-earnings ratio, reported a record annual profit, but analysts said its bottom line was boosted by a lift in trading income which can be volatile.
National Australia Bank and Westpac slipped 1.6% and 1.3%, respectively.
Miners climbed 0.9% after iron ore futures closed higher overnight as steel mills in Chinese production hub Tangshan were ordered to halt operations.
Mining giants BHP, Rio Tinto and Fortescue gained between 1% and 1.3%.
Tech stocks rose 0.8%, tracking gains in their US peers, while gold stocks advanced 0.6% after a US inflation report raised hopes for a Federal Reserve interest rate cut in September.
Among individual stocks, Treasury Wine Estates rose 5.6% and Insurance Australia Group climbed 1.8% on higher annual profits.
AGL Energy was the weakest performer on the benchmark index with a 12.3% drop, after the power producer posted a 21% drop in annual underlying earnings, missing market estimates.
In New Zealand, the benchmark S&P/NZX 50 index rose 0.6% to 12,840.70. Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
3 hours ago
- Business Recorder
US stocks dip after wholesale inflation jumps
NEW YORK: Wall Street stocks retreated early Thursday after US wholesale inflation topped estimates, complicating the outlook for Federal Reserve monetary policy. The producer price index rose 0.9 percent on a month-on-month basis, much greater than analysts expected and a surprise after Tuesday's reading on consumer prices suggested stable inflation in spite of President Donald Trump's tariffs. 'We're beginning to see the impact of tariffs on inflation, and it's starting with producer prices,' said Adam Sarhan of 50 Park Investments. 'The question is: will it impact consumers? For now, the answer is not yet.' About 15 minutes into trading, the Dow Jones Industrial Average was down 0.4 percent at 44,752.94. US stocks open higher, extending rally The broad-based S&P 500 dipped 0.2 percent to 6,452.85, while the tech-rich Nasdaq Composite Index slipped 0.1 percent to 21,702.61. Futures markets have been betting that the Fed will cut interest rates in September. The PPI report is a 'most unwelcome surprise to the upside and is likely to unwind some of the optimism of a 'guaranteed' rate cut next month,' said Chris Zaccarelli, chief investment officer for Northlight Asset Management. 'If we finish the day flat or even higher then that's a strong indication that the market doesn't need rate cuts to keep moving higher,' Zaccarelli said. 'But if the reaction is extremely negative, then it's an indication that this bull market isn't as robust as many have been claiming.' Among individual companies, Deere & Co sank eight percent after it reported a drop in profits and lowered the ceiling of its full-year earnings range.
Business Recorder
4 hours ago
- Business Recorder
Oil prices stable ahead of Trump-Putin meeting in Alaska
LONDON: Oil prices were stable on Thursday as investors weighed the potential impact of the upcoming U.S.-Russia summit on Ukraine on Russian crude flows, after U.S. President Donald Trump warned of 'severe consequences' for Moscow if it does not agree to peace. Brent crude futures were up 49 cents, or 0.75%, at $66.12 a barrel by 1303 GMT, while U.S. West Texas Intermediate crude futures rose 51 cents, or 0.81%, to $63.16. Both contracts hit their lowest levels in two months on Wednesday after bearish supply guidance from the U.S. government and the International Energy Agency (IEA). Trump on Wednesday threatened 'severe consequences' if Russian President Vladimir Putin does not agree to peace in Ukraine. The U.S. president did not specify what the consequences could be, but he has warned of economic sanctions if the meeting in Alaska on Friday proves fruitless. Trump has threatened to enact secondary tariffs on buyers of Russian crude, primarily China and India, if Russia continues its war in Ukraine. Oil prices drift lower 'The uncertainty of U.S.-Russia peace talks continues to add a bullish risk premium given Russian oil buyers could face more economic pressure,' Rystad Energy said in a client note. 'How (the) Ukraine-Russia crisis resolves and Russia flows change could bring some unexpected surprises.' However, some analysts remained sceptical that Trump would take action that could significantly disrupt oil supplies. 'Anything that causes oil prices to rise from policy such as secondary tariffs is almost an own goal against this administration, and the man from Moscow knows it,' PVM analyst John Evans said. Expectations that the U.S. Federal Reserve will cut interest rates in September also propped up oil prices, as lower borrowing rates can spur economic growth and demand for oil. Traders overwhelmingly believe a cut will happen next month after U.S. consumer prices increased at a moderate pace in July. U.S. Treasury Secretary Scott Bessent said he thought an aggressive half-percentage-point cut was possible given recent weak employment numbers. Oil prices were kept in check on Wednesday as crude inventories in the U.S. unexpectedly rose by 3 million barrels in the week ending August 8, according to the U.S. Energy Information Administration on Wednesday.
Business Recorder
6 hours ago
- Business Recorder
S&P upgrades India rating, despite US tariff threats
MUMBAI: S&P upgraded India's long-term sovereign credit rating on Thursday, with the agency citing New Delhi's 'commitment to fiscal consolidation' and its 'buoyant economic growth'. The US ratings agency said it was upgrading the world's fifth-largest economy from BBB- to BBB, adding that it expects the impact of US President Donald Trump's tariff blitz on India to be 'manageable'. The outlook on the long-term rating, S&P noted, is 'stable'. 'The upgrade of India reflects its buoyant economic growth, against the backdrop of an enhanced monetary policy environment that anchors inflationary expectations,' S&P said in a statement. 'Together with the government's commitment to fiscal consolidation and efforts to improve spending quality, we believe these factors have coalesced to benefit credit metrics.' India reels from US tariff hike threat While India remains the world's fastest-growing major economy, there has recently been a slowdown in urban demand and muted government expenditure. The Indian economy expanded at its slowest pace in four years in the fiscal year that ended in March 2025. New Delhi's economic outlook has also been darkened in recent weeks by Trump's decision to punish its purchases of Russian oil by threatening to increase tariffs from 25 percent to 50 percent. But S&P believes that India's growth prospects won't be thrown off course as a result of Trump's chaotic trade policies, noting that even the 50 percent tariffs would not 'pose a material drag on growth'. India and China eye border trade resumption 'India is relatively less reliant on trade and about 60 percent of its economic growth stems from domestic consumption,' the agency's statement said. 'Factoring in sectoral exemptions on pharmaceuticals and consumer electronics, the exposure of Indian exports subjected to tariffs is lower at 1.2 percent of GDP,' it added. 'Though this may eventually result in a one-off hit to growth, we envisage the overall impact to be marginal and will not derail India's long-term growth prospects.' It added that even if India had to switch from importing Russian oil, the fiscal cost would be 'modest' given the 'narrow price differential between Russian crude and current international benchmarks'.
