Australian shares retreat as commodity stocks drag
July 5 (Reuters) -Australian shares slipped on Friday after two straight sessions of gains, with commodity-related stocks and financials leading the retreat, while investors globally awaited U.S. jobs data for cues when the Federal Reserve will cut interest rates this year.
The S&P/ASX 200 index .AXJO inched lower 0.1% to 7,822.100 by 0050 GMT, but was up 0.7% for the week.
The U.S. nonfarm payrolls report, due later in the day, is expected to show an increase of 190,000 jobs in June after a rise of 272,000 in May, a Reuters poll of economists showed.
Markets now see nearly 50 basis points of Federal Reserve interest rate cuts in 2024, most likely starting with a 25-basis-point move in September and a second by year-end.
In Sydney, miners .AXMM fell 0.3%, with analysts at Citi flagging concerns about iron ore prices. BHP Group BHP.AX lost 0.5%, while Rio Tinto RIO.AX fell 0.4%.
Energy stocks .AXEJ declined 0.2% after an eight-session rally. The sub-index was on track for its best week since the week ended May 10.
Woodside Energy WDS.AX skidded 0.3%, while Santos STO.AX lost 0.8% after Saudi Aramco 2223.SE said reports saying it was considering an offer for the Australian firm were inaccurate.
Interest rate-sensitive financials .AXFJ shed 0.2%, with the "Big Four" banks down between 0.1% and 0.5%.
The real estate sector .AXRE dropped 0.4% after two sessions of gains.
Bucking the trend, healthcare stocks .AXHJ rose 0.4% and information technology stocks .AXIJ gained 0.2%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 was flat as of 0050 GMT.
Reporting by Rajasik Mukherjee in Bengaluru; Editing by Subhranshu Sahu
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