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Miners down 1%

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Banks hit lowest since June 23

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Rio Tinto gains 0.2%

(Updates to close)

By Rajasik Mukherjee

July 16 (Reuters) - Australian shares fell on Wednesday,

led by banks and mining companies, after the latest U.S.

inflation data indicated tariffs may be pushing prices higher,

dampening hopes for near-term rate cuts by the Federal Reserve.

The S&P/ASX 200 index ended the day 0.8% lower at

8561.8. The benchmark had ended 0.7% higher on Tuesday, notching

a record close.

U.S. consumer prices rose in June at their fastest pace in

five months, data showed on Tuesday, signalling that President

Donald Trump's intensifying import tariffs were starting to hit

households and could put the Federal Reserve on the back foot.

The rate-sensitive financials sub-index declined

more than 1% to its lowest in over three weeks. Top lenders

Commonwealth Bank of Australia ( CBAUF ) and National Australia

Bank ( NAUBF ) lost over 1% and 3%, respectively.

"June CPI feels like a belated alarm bell...trickling into

the local market, hitting rate-sensitive names and growth

stocks. For the RBA, it only strengthens the case for

wait-and-see, especially with the tariff turmoil," said Hebe

Chen, market analyst at Vantage Markets.

The financial sector has come under pressure amid

tariff-related uncertainty and shifting rate expectations,

weighing particularly on CBA, which had been trading at a

premium to the benchmark.

ASX-listed shares of gold mining giant Newmont Corporation ( NEM )

fell 5.7% on Tuesday after its finance chief resigned,

making it the biggest drag on the mining sub-index,

which slipped 1%.

Diversified miner South32 ( SHTLF ) was also among the top

losers, falling 3%, after UBS cut its price target on concerns

over its Mozal aluminium smelter.

Global iron ore miner Rio Tinto reported its

strongest second-quarter output since 2018 earlier in the day

after announcing Simon Trott as its CEO after market hours on

Tuesday.

Its shares were in the red much of the session before ending

slightly higher.

New Zealand's benchmark S&P/NZX 50 index ended the

day 0.5% higher at 12,754.59 points.