ASX 200 heads for steepest fall in three weeks as miners and banks weigh

what happened

Reuters reports that the S&P/ASX 200 dropped 1.1% to 8,752.80 by 2327 GMT, putting it on course for its steepest decline since October 1. The index had edged up 0.4% on Monday. Pressure came mainly from lenders and resource companies, while technology names moved higher.

National Australia Bank said it will eliminate up to 2,500 positions, roughly 6% of its staff, during 2027, aiming to streamline operations as tougher credit growth prospects weigh on the country's largest business lender. Its stock was down 1.9%, while Commonwealth Bank, Westpac and ANZ lost between 1.2% and 1.6%.

Miners lost 2%. BHP shares fell as much as 2.4% after the globally largest listed mining company posted first-quarter copper output below forecasts, which it linked to disruptions at its Escondida mine in Chile. Rio Tinto and Fortescue each shed more than 1%, gold producers dropped 2.3% after overnight bullion losses, and energy shares slipped up to 1.6% as Brent eased. Woodside fell 0.9% and Santos 1.2%.

why it matters

New Zealand's S&P/NZX 50 was almost unchanged at 13,650.72. Investors are waiting for third-quarter inflation figures due later this week, which could shape expectations for the Reserve Bank's rate path. Market pricing implies an 89% probability of a third rate increase this year at the October 28 meeting.

market impact

Australian banks and miners: pressure from NAB's restructuring and weaker commodity prices on the ASX 200

instruments