FX.co ★ Australian Stocks Slip at Start of Week

Australian shares edged down 24 points, or 0.3%, to around 8,705 on Monday morning, marking a second consecutive subdued session as oil prices climbed following a Houthi strike on Saudi Arabia’s capital, Riyadh. Domestically, Reserve Bank of Australia Governor Michele Bullock adopted a hawkish tone in parliamentary testimony, cautioning that inflation remains persistently high and that upside risks are emerging, keeping the prospect of further rate hikes on the table. Losses were limited, however, by a solid rise in U.S. stock futures, while investors also turned their attention to the upcoming bilateral summit between U.S. President Donald Trump and Chinese President Xi Jinping at the White House on Thursday. Healthcare, non-energy minerals, and industrials led the declines, while gains in consumer durables, utilities, and technology helped offset some of the weakness. Two of the four major banks slipped, and notable losers included Nextdc Ltd. (-1.6%), Xero Ltd. (-1.5%), and Reece Ltd. (-1.3%). Investors now look ahead to Australia’s flash September PMI and August labour-market data due later this week.