Australian shares started the week lower on Monday, led down by heavyweight banking and gold stocks, as investors brace for the domestic central bank’s interest rate decision this week.
The S&P/ASX 200 index dropped 0.5% to 8,510.1, as of 1208 GMT.
The benchmark had closed 0.4% higher on Friday, after hitting a record high of 8,615.20.
Financials dropped 1.6%, on track for their third straight session of losses, after all of the “Big Four” lenders tanked. Westpac, down 5.9%, fell most since August 5.
Westpac posted a rise in its first-quarter net profit but based on the bank’s average quarterly performance in the second half of 2024, profit was down 9%.
Top lender Commonwealth Bank of Australia shed 2%, while National Australia Bank and ANZ tracked the subdued sentiment, losing more than 2% each.
The Reserve Bank of Australia will announce its cash-rate decision on Tuesday. Most market participants now expect the RBA to proceed with a quarter-point rate cut.
Over 90% of 43 economists polled by Reuters are predicting a 25 basis point cut.
Banks, pharmaceuticals drag Australian shares lower
Gold stocks dropped 3.3% after an eight-session rally, as bullion fell on Friday amid profit-taking. Northern Star Resources led the declines, down 3.9%, while Evolution Mining fell 4.3%.
Energy stocks shed 1.5%, as crude oil prices fell on prospects of a peace deal between Russia and Ukraine, easing tensions regarding global supply disruptions.
Australia’s no.1 independent oil and gas producer Woodside Energy dragged the sub-index, shedding 3.2%.
In New Zealand, the benchmark S&P/NZX 50 index rose 0.3% to 13,027.81.