SYDNEY: Australian shares faltered on Thursday after Federal Reserve Chair Janet Yellen indicated at a rate hike in December in the United States, leading to heavy selling in banking stocks.
At home, comment by central bank governor Glenn Stevens that recent rises in mortgage rates by the big banks need not be offset with a cut in the official cash rate further soured sentiment.
The S&P/ASX 200 index skidded 1.3 per cent to 5,193.2 by 0237 GMT. The benchmark barely moved on Wednesday, ending at 5,242.3.
The index is on track for another weekly loss after slipping more than 2 per cent the previous week.
