Banks, energy stocks drag Australia shares lower

Aug 8 (Reuters) – Australian shares inched lower on Friday, after two record-setting sessions, as banks and energy stocks declined, while investors braced for peak corporate earnings and the local central bank’s rate decision next week.

The S&P/ASX 200 index eased 0.1% to 8,827.10 points by 0048 GMT. It had slipped below the psychologically key 8,800-level to 8,794.50 points earlier in the day.

Shares rallied in the past two sessions as investors priced in a high likelihood of a rate cut from the Reserve Bank of Australia (RBA) next week and the Federal Reserve in September.

Market participants are now awaiting results from some of the largest Australian companies next week, including the Commonwealth Bank of Australia (CBA), Westpac and ANZ Group.

On the local bourse, financials fell 0.4%, with three of the “Big Four” banks losing between 0.2% and 0.5%.

QBE Insurance lost 4.1% despite beating market estimates for half-year interim earnings.

Energy stocks fell 0.3% as oil slipped for the sixth straight session after the Kremlin said President Vladimir Putin would meet U.S. President Donald Trump in the coming days, raising hopes for a diplomatic end to the war in Ukraine.

Woodside Energy and Santos shed 0.7% and 0.1%, respectively.

Meanwhile, miners rose 1.2%, capping losses on the benchmark, with Rio Tinto and BHP gaining 0.8% and 0.9%, respectively.

Gold stocks advanced 1.6% tracking a jump in bullion prices, buoyed by safe-haven demand after Trump’s tariffs took effect.

Evolution Mining rose 1.5%.

New Zealand’s benchmark S&P/NZX 50 index inched 0.1% higher to 12,902.88 points. (Reporting by Shivangi Lahiri in Bengaluru; Editing by Sumana Nandy)