<div id="readability-page-1"><div><div><div>Key points:<ul><li>ASX200 ends near 1-week low</li><li>CBA logs worst day since late November</li><li>IGO hits highest since May</li><li>NZ50 touches 2-month closing low</li></ul></div>By Nikita Maria Jino Australian shares closed lower for a third consecutive session on Wednesday, as concerns about earnings growth and prospects for a restrictive monetary policy environment next year pressured heavyweight banking stocks.The S&amp;P/ASX 200 fell 0.2% at 8,585.20, its lowest close since December 10.Financials slipped 0.4%, its weakest session since December 1. Commonwealth Bank of Australia , which alone accounts for nearly 10% of the main index, declined 0.8%, its biggest plunge in nearly three weeks.The banking sub-index has fallen nearly 8% after top lender CBA last month signalled mounting margin pressure. CBA has lost nearly 12% since.Adding to investor caution was the Australian government sharply lifting its inflation outlook, reaffirming the Reserve Bank of Australia's hawkish tone at its meeting earlier this month.Higher interest rates may permit higher margins for banks, though competition may erode those gains alongside lower lending volumes, said Philip Pepe, senior equities analyst at Shaw and Partners.Consumer staples stocks (.AXSJ) declined 1.3%, following a 9.3% tumble in Treasury Wine Estates . The luxury winemaker shelved the remaining portion of its share buyback and forecast sharply lower operating earnings for the first half of fiscal year 2026.Mining stocks capped broader losses on the benchmark after adding 1.8%, as copper and iron ore prices rose. BHP and Rio Tinto advanced 0.4% and 0.8%, respectively. Among lithium miners, Liontown surged 11.8%, while IGO closed at its highest in nearly seven months after J.P.Morgan lifted its pricing outlook for the metal.Separately, Star Entertainment finished at its highest level since mid-September after the casino operator appointed Bruce Mathieson Jr as CEO. New Zealand's S&amp;P/NZX 50 index closed down 1% at 13,295.91, its lowest since October 17. The country's top central banker said its cash rate was likely to remain low through next year, ahead of the quarterly economic growth report due Thursday.</div></div></div>

COST

Australian shares fell for the third consecutive day, with the ASX200 closing near a one-week low. Banking stocks, particularly Commonwealth Bank of Australia, weighed heavily due to concerns over earnings growth and restrictive monetary policy. The financial sector slipped 0.4%, while consumer staples declined 1.3%. Mining stocks provided some relief, with gains in copper and iron ore prices. Liontown surged 11.8% among lithium miners. The S&P/NZX 50 index in New Zealand also fell, closing at its lowest since October 17.

Australian shares fall for third straight day as banks weigh heavy