Australian shares fell on Monday, led by mining and consumers sectors, with traders waiting for the central bank’s cash rate decision, while Coles and Woolworths dragged after the grocers were sued by the Australian competition regulator.
The S&P/ASX 200 index fell 0.7% to 8154.5, as of 0050 GMT. The benchmark closed 0.2% higher on Friday.
Market participants now await the Reserve Bank of Australia’s cash rate decision, due on Tuesday, where the central bank is expected to hold onto its 12-year high interest rate, a Reuters’ poll showed.
Heavyweight miners lost 1.2% and the sub-index was on track for its worst intraday decline since early September.
“Miners will have a grim day as iron ore prices are down 3.4% today, and aluminium is 2.2% lower,” said Jessica Amir, a market strategist at trading platform moomoo.
Sector giants BHP Group fell 1.8% while Rio Tinto lost 1.3%.
Australia shares hit record high on Fed rate cut boost
Consumer stocks declined 3.2%, with Coles and Woolworths losing 3.3% and 4.3%, respectively, after they were sued by the Australian competition regulator for misleading customers about their discount pricing.
Rate-sensitive financials fell 0.4%, with the country’s top lender Commonwealth Bank of Australia losing 0.6%.
Investors are also closely looking at the local inflation reading, due later this week to gauge the RBA’s monetary policy.
Property listing firm REA Group shed 0.3% after it sweetened its offer for Britain’s Rightmove.
On Friday, the U.S. Dow Jones Industrial Average rose 38.17 points, or 0.09%, to 42,063.36. The S&P 500 lost 11.09 points, or 0.19% while Nasdaq lost 65.66 points, or 0.36%.
In New Zealand, the benchmark S&P/NZX 50 index fell 0.4% to 12428.63.
Source: Brecorder
