Miners, energy stocks drag Australian shares lower; RBA decision looms
04/11/2025 24:08
Nov 4 (Reuters) - Australian shares fell on Tuesday weighed down by energy and mining stocks, while investors awaited a key policy decision from the central bank due later in the day for further direction on interest rates. The S&P/ASX 200 index .AXJO retreated 0.4% to 8,862.60 points as of 2359 GMT. The benchmark rose 0.2% on Monday. After last week's surprisingly strong inflation data for September crushed investor expectations of rate cuts this year, the Reserve Bank of Australia's policy decision, due at 0330 GMT, will draw more attention for any clues on the future direction of rates. "Interest rate futures suggest the RBA's rate-cutting cycle has come to an end, pricing in no more cuts in 2025 and 2026," Westpac analysts said in a note. Heavyweight mining stocks .AXMM were the biggest laggards on the benchmark index, as iron ore futures prices fell weighed down by declining steel production in China, rising port inventories, and concerns over weakening downstream demand. IRONORE/ Weak copper prices due to slowing manufacturing activity in China and a stronger dollar also weighed on the sub-index. MET/L Mining stocks, which were on track for their second consecutive day of losses, fell as much as 1.2% with BHP Group BHP.AX and Rio Tinto RIO.AX retreating 0.7% and 2.2%, respectively. Fortescue FMG.AX declined 1%. Energy stocks .AXEJ retreated 0.8% after the sub-index jumped more than 3% in the past four sessions. It was on track to snap four consecutive days of gains. Woodside Energy WDS.AX and Santos STO.AX fell 0.7% and 0.5%, respectively. Financial stocks .AXFJ retreated 0.5%, with top lender CBA CBA.AX falling 1%. Shares of Novonix NVX.AX fell as much as 15% to hit a one-month low after a unit of automaker Stellantis STLAM.MI terminated its offtake agreement with the battery materials supplier. New Zealand's benchmark S&P/NZX 50 index .NZ50 advanced 0.6% to 13,642.06 points. (Reporting by John Biju in Bengaluru; Editing by Alan Barona) ((John.Biju@thomsonreuters.com;))