Australia's ASX 200 Closes Nearly Flat at 8,732 as Losses in Banks and Miners Offset a Rise in Gold Stocks

SYDNEY — Australia's S&P/ASX 200 finished Wednesday almost unchanged, down 4.1 points, or 0.05 percent, at 8,731.6, as losses in the banks and the big iron-ore miners canceled a rally in gold shares.

The index had been weaker through the morning. At 11:20 a.m. it was down 30.5 points, or 0.3 percent, at 8,705.2, even with eight of 11 sectors higher. A later screen showed it off 0.3 percent at 8,710. The close recovered most of that dip and left the benchmark a rounding error from Tuesday's finish, when it had risen 0.6 percent to about 8,736, a third straight gain.

Banks slipped about 0.3 percent after three winning sessions. The four majors were all lower in the morning, from about 0.5 percent at ANZ to about 1.3 percent at Commonwealth Bank. By later trade Commonwealth was down about 0.8 percent, Westpac about 0.9 percent and National Australia Bank about 0.4 percent. ANZ turned slightly positive.

Miners were the other weight. BHP and Rio Tinto were down about 0.5 to 0.7 percent in the morning and BHP was later off about 1.4 percent. Fortescue fell about 1.6 percent. Gold stocks rose 1.9 percent and were on pace for their best day in a week. Northern Star gained as much as 3.2 percent, Evolution Mining about 1.6 to 1.8 percent, and Newmont about 1 percent.

The macro drag was a household survey, not a data print from the mines. The Westpac-Melbourne Institute index of consumer sentiment fell for a second straight month in October. Higher borrowing costs after Reserve Bank tightening have squeezed household finances and added to cost-of-living strain, the survey found. Markets were pricing a 75.7 percent chance the Reserve Bank holds in November and a 24.3 percent chance of another increase. Minutes of the last meeting are due next week.

Wall Street had set a firmer lead. U.S. stocks reached record highs overnight on bets that companies can absorb higher energy costs and interest rates. The ASX opened higher on that and then gave it back. A U.S. rally that does not lift Commonwealth Bank or BHP does not lift this index. Those two names, with Rio, are the tape.

Energy was mixed. Woodside was flat, Santos up about 0.2 percent, Ampol down about 0.8 percent. The split fits a market that wants gold, which rose with the bullion price, and does not want the banks that have to live with a 4.60 percent cash rate and a consumer who just told a survey the month got worse.

The index is about 2.5 percent below its level of a year ago and well under a record near 9,272. Wednesday's 4-point decline is not a turn. It is a session in which the two largest groups lost and the gold group was not big enough to cover them. The next local test is the Reserve Bank minutes. Until those land, the close at 8,731.6 is a market waiting on rates and paying up only for the miners that do not dig iron.