Mining and the financial sector drag Australian stocks to their lowest level in almost 3 months

Australian shares hit a near three-month low on Monday, weighed down by losses in banking and mining stocks, as cautious investors await crucial domestic economic indicators, including inflation data, this week.

The S & P / ASX 200 index fell 0.4 percent to 7073.1 at 0043 GMT, its lowest level since March 30. The benchmark index closed 1.3% lower on Friday.

Testifying before US lawmakers last week, Federal Reserve Chairman Jerome Powell indicated that the central bank had not reached the end of its tightening cycle, while reassuring him that the Fed would proceed with caution.

In Sydney, miners lost about 1%, with iron ore giant BHP Group leading the loss. Rio Tinto and Fortescue Metals fell 1.3% and 0.9%, respectively.

Financial stocks fell 0.3 percent, with the four largest banks retreating. The Commonwealth Bank of Australia fell 0.7%.

Technology stocks held steady with Xero and Megaport losing 0.1% and 3.4%, respectively.

Healthcare stocks lost 0.4%, following a downbeat mood.

However, gold stocks limited the index’s losses, rising 1.1% on the strength of bullion. Sub-index heavyweights Newcrest Mining and Northern Star Resources gained 1.2% each.

Metcash jumped 5.3% after the food retailer increased its annual dividend.

Perenti shares fell 10.4% after the diversified miner said it would buy smaller rival DDH1 in a deal worth A$410 million ($273.84 million). DDH1 shares jumped 7%.

The companies said the Australian unit of retail giant Wesfarmers Pharmaceuticals will buy beauty company SILK Laser Australia for around A$180 million. Silk rose 17.4% to A$3.31.

Element 25 rose 20% after the battery metal producer struck a manganese sulfate supply deal with General Motors.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 fell 0.4% to 11,694.9.

($1 = A$1.4972) (Reporting by Reshav Chatterjee in Bengaluru; Writing by Rashmi Aish)