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Australia shares slip as U.S. inflation fears weigh; energy, banking stocks fall most

Published 12/05/2021, 11:05 am
Updated 12/05/2021, 11:06 am
© Reuters.
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May 12 (Reuters) - Australian shares inched lower on Wednesday, with most losses in energy stocks and major banks, tracking an overnight Wall Street sell-off as worries about rising inflation in the United States weighed on risk sentiment.

The S&P/ASX 200 .AXJO slipped 0.09% to 7,090.9 by 0025 GMT.

Wall Street closed lower as rising commodity prices and labour shortages fed fears that despite reassurances from the U.S. Federal Reserve, near-term price spikes could translate into longer-term inflation. .N

Australian energy stocks .AXEJ skidded 0.74​,% even as oil prices rose amid lingering fears of gasoline shortages after a cyber attack on the U.S. fuel pipeline system. O/R

Sector heavyweight Whitehaven Coal WHC.AX fell 2.87%, followed by Origin Energy Ltd ORG.AX , losing 1.48%.

Financial stocks .AXFJ tumbled 0.54%, with all the 'Big Four' banks in the red, even as the country's biggest lender Commonwealth Bank of Australia CBA.AX almost doubled its third-quarter cash profit. Group SUN.AX and Omni Bridgeway Ltd OBL.AX led losses, slipping 4.37% and 2.82%, respectively.

Building materials firm CSR Ltd CSR.AX jumped as much as 6.3% to a more than 13-year high after posting a higher full-year profit. the Tasman Sea, New Zealand's benchmark S&P/NZX 50 .NZ50 fell 0.2% to 12,613.9.

In other markets, Japan's Nikkei .N225 was up 0.36% at 28,711.59, and the S&P 500 E-minis futures EScv1 were up 0.07%.

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