AU Evening Wrap: Australian Shares Dropped 0.8% as Mining Stocks Continue Slide

The $S&P/ASX 200 (.XJO.AU)$ in Australia closed 0.8% lower at 7733.7, driven by a slump in mining stocks.

The materials sector, in particular, fell by 1.1% due to a decline in commodity prices, resulting in a 6.7% retreat so far this month. $BHP Group Ltd (BHP.AU)$, $Rio Tinto Ltd (RIO.AU)$, and $Fortescue Ltd (FMG.AU)$, the three major iron-ore miners, experienced losses ranging from 0.8% to 2.1%. This marks the sixth consecutive weekly decline for the materials sector. Only the industrials sector saw gains. Meanwhile, banks such as $Westpac Banking Corp (WBC.AU)$, $CommBank (CBA.AU)$, $National Australia Bank Ltd (NAB.AU)$, and $ANZ Group Holdings Ltd (ANZ.AU)$ lost between 0.3% and 1.0%. Investors are anticipating the release of May inflation data midweek, which could potentially influence the expected movement of interest rates.

Australian retail giant $Premier Investments Ltd (PMV.AU)$ is currently evaluating a proposal from $Myer Holdings Ltd (MYR.AU)$, which involves exchanging Premier's apparel business for shares and a position on Myer's board. The proposed combination would merge the 124-year-old department store operator with Premier's apparel business, which encompasses 717 stores across Just Jeans, Jay Jays, Portmans, Jacqui E and Dotti brands.