The S&P/ASX 200 index experienced a 0.4% decline on Tuesday, settling at 9,018, as it reversed gains from the previous day. This shift occurred as investors adjusted their expectations regarding a potential interest rate cut anticipated for next week. Presently, the market is indicating only a 15% likelihood of a rate reduction, a significant drop from the previous 60% forecast. This change arose after RBA Governor Michele Bullock reiterated the bank’s perspective that the labor market is still “a little tight,” despite the recent uptick in unemployment surpassing the RBA’s predictions. Investors are now keenly awaiting Wednesday’s release of Q3 inflation figures and the September Monthly CPI indicator to gather further insights into the future of interest rates. The gold sector saw a notable decline of 5.4%, reaching its lowest point in over a month, attributed to diminishing demand for safe-haven assets amid alleviating US-China trade tensions. Specifically, Newmont Corporation fell by 5.7%, Northern Star Resources decreased by 4%, and Evolution Mining went down by 3.8%. Conversely, major banks provided support to the index, with National Australia Bank increasing by 2.5%, Westpac climbing 1.9%, Commonwealth Bank rising 1.8%, and ANZ advancing by 1.4%.
The material has been provided by InstaForex Company – www.instaforex.com
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