Australian shares slip as banks outweigh mining gains; inflation data in focus

On Tuesday, Australian shares experienced a decline as financial losses outpaced gains from mining stocks, driven by surging copper prices. The S&P/ASX 200 index slipped by 0.3% to 8,783.00. The benchmark had climbed 0.2% on Monday. Market attention is centered on Wednesday's quarterly inflation report, which may provide insight into the Reserve Bank of Australia's upcoming policy decision.

Swaps indicate a nearly 65% probability that the central bank will raise interest rates for the fifth time this year during the November 3 meeting. Financials, sensitive to interest rates, fell 0.9%, marking the steepest decline in nearly two weeks. All of the "Big Four" banks, including ANZ, Westpac, NAB, and CBA, experienced losses ranging from 0.8% to 1.2%.

Healthcare stocks also declined by 0.7%, on course for their largest loss since October 2. CSL and Cochlear fell by 1% and 1.5%, respectively. Casino operator Star Entertainment turned a profit on solid performances at its Sydney and Gold Coast venues, with shares surging 21.7%, its highest intraday gain in 11 months. Miners posted gains, tracking the rise in copper prices.

Rio Tinto and BHP increased by 1.3% and 1.7%, respectively. Gold stocks rose 0.3% as bullion prices climbed on Monday. Energy stocks experienced a slight increase, despite crude prices remaining near six-month highs due to ongoing attacks on Saudi Arabia. Santos and Woodside Energy gained between 0.6% and 0.5%, respectively. New Zealand's benchmark S&P/NZX 50 index slipped by 0.8% to 13,619.15, marking its worst session in over three weeks.

Investors are now focusing on Wednesday's central bank decision, with over 80% of economists anticipating a quarter-point interest rate hike from the Reserve Bank of New Zealand, according to a Reuters poll.