Australian Shares Ease as New Week Begins

Australian equities fell 25 points, or 0.3%, to 8,771 in early Monday trading as traders turned cautious after Reserve Bank Assistant Governor Sarah Hunter warned that interest rates may need to rise further, citing stubborn inflation and the risk that overseas price pressures become entrenched in the economy. The remarks reinforced views of a restrictive policy stance after four rate hikes this year. Focus now turns to September inflation data due later this week, after August CPI was still above the RBA's 2-3% target range. Meanwhile, U.S. stock futures were little changed ahead of this week's Fed decision, adding to the subdued mood. Commercial services, communications, and retail stocks led losses, while gains in manufacturing, mining, and energy helped limit the decline. The four major banks slipped between 1.2% and 1.5%, while Ventia Services (-2.7%) and Woolworths (-2.1%) lost sharply. Energy shares outperformed as higher crude prices lifted Woodside Energy 1.5% and Santos 2.2%.