04.11.202507:04:01UTC+00Australian Shares Hit Over 1-Month Low

The S&P/ASX 200 index declined by 0.9% on Tuesday, closing at 8,814, marking its lowest point in over a month. This downturn was attributed to prevailing market apprehensions following the latest policy move by the central bank and its strategic indication of exercising caution before enacting additional rate cuts. The Reserve Bank of Australia (RBA) maintained the cash rate at 3.60% in a unanimous decision, cautioning that inflation may persist more tenaciously than anticipated, especially after headline and trimmed mean inflation figures surpassed their forecasts. Despite an unexpected rise in September’s unemployment figures, the board emphasized that the labor market remains "slightly tight." Additionally, Governor Bullock pointed out that the capacity for further rate cuts is restricted, and any monetary easing in this cycle might be less pronounced compared to previous ones. In the stock market, mining companies were the primary underperformers due to declining iron ore prices, with Fortescue Metals Group dropping 2.7%, Rio Tinto retreating by 2.6%, and BHP Group slipping 1.9%. Furthermore, Novonix saw a substantial decline of 10.6%, reaching a one-month low following Stellantis' termination of its offtake agreement with the battery materials manufacturer.