News: XEJ Australian shares skid off record high as banks, miners weigh

	  Benchmark snaps three days of gains, clocks worst day 

since July 7, 2023

	  Miners fall most in over 4 months 

	  RBA cash rate due next week 

(Updates to close)

Australian shares retreated from record high levels on Monday, with heavyweight mining and banking stocks dragging down the benchmark as investors turn their attention to the central bank's monetary policy meeting next week.

The S&P/ASX 200 index (xjo) fell 1.8% to end at 7,704.200, slipping off the all-time peak closing of 7,847.00 on Friday. It also snapped a three-day winning streak and marked its worst day since early July last year.

Banks .AXFJ closed the day 2.2% lower, their worst intraday fall in over 10 months. The "Big Four" lenders lost over 2% each.

Westpac Banking Corp (WBC) lost around 3.2%, its worst day since May 11, 2023. National Australia Bank (NAB) shed around 3.1%, its worst day since Nov. 14, 2023.

Miners .AXMM declined 2.7% to their lowest level since October last year. They were the worst drags on the benchmark, as iron ore prices dropped on weak demand from top buyer China.

BHP Group (BHP) , Rio Tinto (RIO) , and Fortescue (FMG) lost between 2.7% and 3.5%, and were the top losers on the sub-index.

Brad Smoling, managing director of Smoling Stockbroking, said "there might be a bit of profit taking at this stage."

"It is a general sell-off, I think the market is having just a healthy little pull back," Smoling added.

Investors are awaiting the Reserve Bank of Australia's (RBA) monetary policy meeting next week, where the central bank is largely expected to keep its cash rate unchanged even as data increasingly indicates the high borrowing rate has had its desired impact.

"We expect the RBA to begin cutting rates in November this year, however there is a chance the RBA begins easing earlier –especially given recent slightly lower inflation and higher unemployment than expected," analysts at ANZ wrote.

Energy stocks .AXEJ lost 2.1% on concerns over weak China demand as geopolitical concerns continue to linger.

Woodside Energy (WDS) and Santos (STO) shed 2.4% and 2.1% respectively.

Healthcare stocks .AXHJ shed 1.6%, while real estate stocks .AXRE ended 1.1% lower.

New Zealand's benchmark S&P/NZX 50 index (nz50) fell 0.4% to finish the session at 11,873.6700.