Australian shares hit over 3 — month low as oil rally revives inflation worries
Sept 24 (Reuters) — Australian shares hit a more than three-month low on Thursday, with most sectors trading in negative territory, as a sharp rise in oil prices revived concerns that inflation could stay persistent and keep monetary policy tight. The S&P/ASX 200 index was down 1.2% at 8,658.10, as of 0010 GMT. The index fell as much as 1.4% earlier in the session, hitting its lowest since June 12. Crude oil prices surged nearly 4% overnight after tensions between Iran and the United States flared anew, undermining hopes for an imminent easing of Middle East tensions. O/R Australia has been grappling with rising inflation, with fuel costs surging after the Middle East conflict drove up global oil prices. The Reserve Bank has increased its cash rate by 75 basis points in total so far this year and has warned that rates may need to rise again to rein in inflation. Market participants will closely watch monthly employment data due later in the day, the last major economic report before the central bank's policy meeting next week. 0#AUDIRPR Adding to the subdued sentiment, yields on short-term and long-term government bonds surged. Higher rates can weigh on equities both by raising the
Sept 24 (Reuters) — Australian shares hit a more than three-month low on Thursday, with most sectors trading in negative territory, as a sharp rise in oil prices revived concerns that inflation could stay persistent and keep monetary policy tight. 10, as of 0010 GMT. 4% earlier in the session, hitting its lowest since June 12. Crude oil prices surged nearly 4% overnight after tensions between Iran and the United States flared anew, undermining hopes for an imminent easing of Middle East tensions.
O/R Australia has been grappling with rising inflation, with fuel costs surging after the Middle East conflict drove up global oil prices. The Reserve Bank has increased its cash rate by 75 basis points in total so far this year and has warned that rates may need to rise again to rein in inflation. Market participants will closely watch monthly employment data due later in the day, the last major economic report before the central bank's policy meeting next week. 0#AUDIRPR Adding to the subdued sentiment, yields on short-term and long-term government bonds surged.
Higher rates can weigh on equities both by raising the cost of financing corporate investment and by luring buyers back into the bond market. S. dollar. 6%, respectively.
Separately, operations at BHP's Escondida copper mine in Chile were suspended after a worker was killed in an accident. 5% to hit a two-week low. 1%. 4% and 1%, respectively.
1%. 4%, respectively. 54. S.
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