The S&P/ASX 200 dropped 0.2% to 8,894.10, dragged down by resource companies and consumer staples despite modest gains across the banking sector. Sentiment deteriorated as 30 of 32 surveyed economists forecast an interest rate hike to 4.85% following recent hawkish commentary from Governor Michele Bullock. Pressure extended beyond heavyweights BHP and Rio Tinto, as gold miners shed 2.8% and technology shares declined 1.5% tracking Wall Street's Nasdaq losses.
Key points
Anticipation of a central bank rate hike to 4.85% continues to suppress investor risk app…: Anticipation of a central bank rate hike to 4.85% continues to suppress investor risk appetite across the broader Australian market.
Weakening underlying commodity prices and overseas operational disruptions are compoundin…: Weakening underlying commodity prices and overseas operational disruptions are compounding downward pressure on heavyweight mining shares.
Investors are rotating into high-yielding major banks to cushion against widespread losse…: Investors are rotating into high-yielding major banks to cushion against widespread losses in tech, gold, and consumer staples.
Sources checked by our analysis pipeline: 1
Nov 2 (Reuters) - Australian shares edged lower on Monday as miners' losses outweighed bank gains, with investors bracing for a possible fifth rate hike this year.
The S&P/ASX 200 index fell 0.2% to 8,894.10 by 2343 GMT. The benchmark rose 1.3% last week.
Miners fell 1.5%, as sector heavyweights came under pressure from the recent weakness in iron ore and copper prices.
BHP slid 1.3%. Rio Tinto fell 1.4%, extending Friday's losses after it reported that a seismic event temporarily disrupted underground mining at its Oyu Tolgoi copper mine in Mongolia.
Gold sub-index dropped 2.8% after bullion fell to a one-year low in the previous session.
Consumer staples dropped 1.9%, after falling 5% last week, with major grocers and Coles down around 3%.
Among the few bright spots were financials, which rose 0.5%, helped by a 1% advance by Westpac.
The lender reported a marginal rise in its full-year profit, supported by healthy growth in deposits and lending while mortgage demand slowed.
The remaining three of the big four banks posted gains of 0.2% to 0.5%.
A sharp retreat in battery consumption and looming trade headwinds have prompted analysts to downgrade raw material projections through the end of 2028. Upcoming regulatory changes in Europe and the rollback of tax incentives in Beijing are accelerating this downturn by dampening electric vehicle and energy-storage purchases. Consequently, end-users are expected to defer bulk orders and maintain minimal inventories, leaving near-term spot pricing under prolonged pressure.
Authorities are stepping in to halt an equity downturn after an 8.5% slide in October dragged the CSI 300 Index into bear-market territory. Financial watchdogs are exploring optimized lending initiatives for share repurchases alongside expanded funding quotas for state asset managers to directly back equities. These coordinated efforts aim to revive investor confidence amid mounting concerns over contracting economic indicators and corporate earnings.
Market participants across the region shifted into risk-on positioning, directing capital toward technology shares. This positive momentum reflects heightened investor focus on corporate earnings as quarterly results from major industry leaders loom. The resulting upward trajectory established broad support across regional exchanges during the trading session.