18.11.202500:51:24UTC+00Australian Shares Hit Fresh 4-Month Low

The S&P/ASX 200 experienced a 1% decline on Tuesday, dropping to 8,548 and reaching a new four-month low as investor sentiment weakened. This dip followed the release of the Reserve Bank of Australia's (RBA) most recent meeting minutes, highlighting the central bank's continued cautious and data-driven strategy. Policymakers are evaluating the recent rise in inflation and the strength of the labor market. The RBA has already implemented a total of 75 basis points in cuts during its current easing cycle, reducing the cash rate to 3.60%—the lowest since April 2023. Current market indicators suggest a minimal chance for another rate cut in 2025, with most economists predicting a resumption of easing around May 2026. The index was further pressured by declines in the financial sector: Westpac Banking Corporation decreased by 2%, Commonwealth Bank of Australia dropped 1.6%, and National Australia Bank fell by 1.3%. Additionally, leading mining companies saw drops in their shares, with BHP Group declining 2.1%, Rio Tinto decreasing by 1.5%, and Fortescue Metals Group falling 0.8% amid decreasing commodity prices.