Australian shares fell for a second consecutive session on Tuesday, weighed down by commodity stocks, while investors awaited the domestic central bank’s interest rate decision.
The S&P/ASX 200 index fell 0.5% to 7585.10 by 2315 GMT.
The benchmark fell 1% on Monday. The Reserve Bank of Australia (RBA) is expected to keep interest rates on hold in its February monetary policy meeting, concluding later in the day, a Reuters’ poll showed.
Investors also await the country’s fourth-quarter retail trade data, slated to come out later in the day, for clearer hints on the central bank’s monetary policy decisions.
Additionally, concern among investors was heightened when Federal Reserve Chair Jerome Powell, in an interview, firmly pushed back against rumours of impending rate cuts.
The heavyweight metals and mining index fell 1.44%, set for its lowest close since Jan. 22, as iron ore futures were under pressure from ongoing caution brought on by growing port stockpiles and persisting property concerns in China, the biggest consumer.
Shares of sector majors BHP Group and Rio Tinto traded 1.1% and 0.6% lower, respectively. Gold stocks added to the downward trend, dropping 1.39%, set for lowest close since Nov. 13, 2023.
Shares of gold miners Northern Star Resources and Evolution Mining fell 1.2% and 1.6%, respectively. Rate-sensitive financials lost 0.2%, with the big four banks down between 0.1% and 0.3%.
Australian shares drop 1% ahead of RBA rate decision
Energy stocks fell 0.3%, with sector giant Woodside Energy down 0.2%, while Santos declined 0.3%.
Technology stocks were down 1%, tracking an overnight fall in their Wall Street peers. Xero dropped 1.6%.
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