Australian shares declined on Monday, breaking a seven-day winning streak as investors pulled back ahead of the central bank’s interest rate decision, while top grocers Woolworths and Coles declined after being sued by the consumer watchdog.
The S&P/ASX 200 index fell 0.7% to 8,152.9 points. The benchmark touched an all-time high on Friday.
The Reserve Bank of Australia is expected to keep its cash rate unchanged at its policy meeting on Tuesday, with the first reduction likely in early 2025, according to a Reuters poll.
“There will be close attention on whether or not the RBA softens its hawkish stance now that the U.S. has started cutting interest rates,” said Tim Waterer, market analyst at KCM Trade.
Consumer stocks lost 2.8% as Woolworths and Coles both slid 3.4% after the country’s consumer regulator filed lawsuits accusing the supermarket giants of misleading shoppers about discounts.
“The prospect of stiff financial penalties for Coles and Woolworths resulted in the stocks being shunned by investors today,” Waterer said.
Australia shares hit record high on Fed rate cut boost
Miners led losses on the benchmark, falling 0.6% as they tracked a steep decline in iron ore prices on prospects of weak demand in top consumer China. The sub-index recorded its worst day since Sept. 6.
Top miners BHP and Rio Tinto dipped 1.5% and 0.8%, respectively.
Financials shed 0.5%, snapping a five-day rally.
Bucking the trend, energy stocks and gold miners rose 0.9% and 0.4%, respectively, lifted by robust underlying prices.
In corporate news, property listings company REA Group closed 2.1% lower after increasing its takeover offer for Britain’s Rightmove to 6.1 billion pounds ($8.12 billion).
Pathology firm Healius gained 7.8% as it sold its diagnostic imaging arm for A$965 million ($659 million).
New Zealand’s benchmark S&P/NZX 50 index finished 0.6% lower at 12,404.17 points.
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