Australian stocks drift lower

Australia stocks fell today amid weak global cues as heavy selling in US stocks overnight weighed on the sentiments. Gold, technology and financial stocks came under pressure and the S&P/ASX 200 dipped 0.74%. The All Ordinaries index pared 0.76% on the day. COMEX Gold futures slid below $2000 per ounce in Asian electronic trading, hitting a two-month low following sharp rally in the US dollar. The dollar index maintained three-month highs near 104.80 on Wednesday, following a nearly 1% surge in the previous session, driven by hot US consumer inflation data. The strong report pushed the index towards 105, its highest level in three months, making dollar-denominated commodities and assets more expensive for buyers holding other currencies.

Commonwealth Bank (CBA) led the financials lower. Australia's biggest lender, Commonwealth Bank recorded a $5bn cash profit for the first half of the financial year, just below of its record six-month profit recorded a year earlier. The bank's its net interest margin compressed by six basis points in the December half to 1.99%. After the release of the financial results, the Commonwealth Bank chief executive, Matt Comyn, said the bank was not leading pricing activity in the sector. The stock fell near two week low today.