Australian shares head for fourth weekly loss on oil-driven inflation fears

By Reuters News

Sept 25 (Reuters) - Australian shares fell for a second straight session on Friday and were on track for a fourth weekly loss in a row, as rising oil prices reignited inflation concerns and added to worries about the outlook for interest rates.

The S&P/ASX 200 index .AXJO slipped 0.5% to 8,661.20 by 0010 GMT, set to shed 0.8% this week as Middle East tensions and a lack of progress in US-Iran peace talks pushed oil prices above $100 a barrel, dampening risk appetite. O/R

In Australia, persistent inflation pressures, fuelled by soaring energy bills and heavy investment in data centres, have led markets to price in another rate hike, which would lift the cash rate to a near 15-year high of 4.60%. 0#AUDIRPR

Meanwhile, data on Thursday showed the local jobless rate unexpectedly rose to a five-year high last month, even as employment made a solid rebound, a mixed report that left markets still wagering on an imminent rate hike to fight inflation.

On the bourse, miners .AXMM led declines with a 1% drop, pressured by weaker copper prices. BHP BHP.AX and Rio Tinto RIO.AX both hit their lowest in about a week. The sub-index was set for a fourth consecutive weekly loss. MET/L

Among gold miners .AXGD, Northern Star Resources NST.AX and Evolution Mining EVN.AX declined 0.7% and 0.5%, respectively.

Technology stocks .AXIJ tracked overnight losses on Wall Street and were last down 1.5%. Logistics software maker WiseTech Global WTC.AX slipped nearly 2%, while accounting software firm Xero XRO.AX shed 2.9%. .N

Consumer discretionary stocks .AXDJ fell 0.7%, while industrials .AXNJ lost 0.5%.

Separately, Insurance Australia Group IAG.AX rose nearly 2% in its biggest intraday gain in two weeks after it agreed to settle an A$2.8 billion ($1.96 billion) Credit Suisse lawsuit over losses linked to collapsed finance firm Greensill Capital.

New Zealand's S&P/NZX 50 index .NZ50 fell 0.3% to 13,788, but was up 0.5% for the week.


($1 = 1.4271 Australian dollars)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.