off-the-wire

Australia shares slip as financials weigh; NAB slumps

Kitco Media
By Reuters
Published:
Updated:
Reuters
May 4 (Reuters) - Australian shares fell on Thursday for a third consecutive session, with financials leading the decline, as worries about the global economic health cautioned investors, while National Australia Bank dropped after posting a sour outlook. The S&P/ASX 200 index fell 0.6% to 7,150.3 points by 0045 GMT. The benchmark fell 1% on Wednesday. The financial index slumped as much as 3.8% — its worst day in more than two months. National Australia Bank, Australia's second-largest, dragged the sub-index lower after warning of headwinds to domestic home lending. Shares of the bank fell as much as 8.1%, to see their worst day in more than three years.


The other three "Big Banks" also dropped within the range of 2.8% and 3.4%. Globally, investors felt jittery after the Federal Reserve raised rates by 25 basis points as expected, even as the U.S. central bank considered a pause in its rate hike path in the coming months. The energy sector slipped around 0.5%, after investors fretted about a weakening global economy that could possibly dilute demand for energy. Sector majors Woodside Energy and Santos fell 0.8% and 0.1%. Meanwhile, the gold index rose about 2.5%, which countered some losses in the benchmark, as investors sought protection in the safe-haven asset.


Newcrest Mining and Northern Star Resources gained about 1.3% and 4%, respectively. The mining and tech index traded about 1% and 0.3% higher.


New Zealand's benchmark S&P/NZX 50 index fell about 0.1% to 11,894.1 points. (Reporting by Archishma Iyer in Bengaluru; editing by Uttaresh Venkateshwaran)


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