Australian shares fall as commodities drag; GDP data in focus

Australian shares traded lower on Monday, with miners and energy stocks weighing the most, while investors await June-quarter economic growth print to gauge the outlook for interest rates.

The S&P/ASX 200 index was down nearly 0.4 per cent at 8,062.90 points, as of 0055 GMT, with all but two sectors in the red. The benchmark ended 0.6 per cent higher on Friday.

The country's second-quarter GDP report, due this week, could set the stage for the Reserve Bank of Australia's interest rate trajectory when officials meet later this month.

Economic data from the United States signalled the Federal Reserve will likely cut interest rates by a smaller quantum of 25 basis points, instead of 50 bps. MKTS/GLOB

The US Dow Jones Industrial Average rose 228.03 points, or 0.55 per cent, to 41,563.08 points on Friday. The S&P 500, .SPX gained 56.44 points, or 1.01 per cent, while Nasdaq .IXIC gained 197.19 points, or 1.13 per cent.

In Sydney, gold stocks .AXGD fell as much as 3 per cent on Monday after bullion prices slumped, with the country's largest gold miner Northern Star Resources NST.AX slipping more than 2 per cent. GOL/

Australian miners .AXMM followed suit, shedding about 0.8 per cent, due to weaker iron prices in top steel producer China, with sector majors BHP Group BHP.AX and Rio Tinto RIO.AX trading down 0.4 per cent and 0.7 per cent, respectively.

Other sectors such as healthcare .AXHJ and technology .AXIJ traded down 0.5 per cent and 0.6 per cent, respectively.

In corporate news, retailer Endeavour Group EDV.AX fell as much as 2.3 per cent, after Woolworths WOW.AXsold its remaining stake in the former for A$383 million.

Brent crude LCOc1 futures fell 0.6 per cent to $76.47 a barrel while US West Texas Intermediate (WTI) crude CLc1 lost 0.56 per cent to $73.14 per barrel.

New Zealand's benchmark S&P/NZX 50 index .NZ50 fell about 0.2 per cent to 12,426.39 points.