Australian stocks ease as miners and tech shares retreat

what happened

According to Newsmetry API, Australian equities moved modestly lower on Tuesday as declines in mining and technology shares outweighed gains elsewhere. The S&P/ASX 200 was down 0.2% at 8,767.80 points by 2333 GMT, following a 0.8% advance in the previous session. Market participants were waiting for the minutes of the Reserve Bank of Australia’s September meeting for indications about the path of interest rates.

RBA Governor Michele Bullock said late last month that certain inflation pressures had “materialised” and that the central bank could lift borrowing costs again if required. Traders put the probability of a hike at 30%, while leaving a pause as the likelier result. The RBA has increased rates four times this year, taking them to a 15-year high of 4.6%.

Energy shares climbed almost 2% to their strongest level in nearly a month. Woodside Energy gained 1.8% and Santos rose 2.3%. Citi analysts said they preferred Australian energy companies ahead of September-quarter earnings, pointing to firmer commodity prices and what they called “compelling value” in the sector. Banks added 0.4%, with National Australia Bank, Westpac and Commonwealth Bank of Australia up 0.2% to 0.5%. Technology stocks dropped 2.6% in line with the overnight Nasdaq decline; WiseTech Global fell 3.6% and Xero lost 2.1%. Miners declined 1.6%, including falls of 1.4% for BHP Group and 1.9% for Rio Tinto, while gold miners slipped 1.2%. Rio Tinto is due to release quarterly production figures on Wednesday. New Zealand’s S&P/NZX 50 fell 0.2% to 13,806.89 points. Oil became more expensive after new attacks in Saudi Arabia, adding uncertainty to the inflation picture and overshadowing confidence linked to US President Donald Trump’s pledge to back Russian diesel exports and a Russia-Ukraine truce that includes energy facilities.

why it matters

The RBA minutes may shape expectations for policy after markets assigned a 30% chance to another increase. Oil prices add to the inflation debate, while energy shares were the strongest part of Australia’s market.

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