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Highlights
- ASX 200 Down 0.3%: The index fell to 7,905.4 points in early trade on Mondat, pressured by weaker commodity prices.
- Mining Stocks Decline: Heavyweights BHP, Rio Tinto, and Fortescue dropped up to 1.2% amid falling iron ore and copper prices.
- Investors Eye Inflation Data: Traders await February inflation figures to gauge the Reserve Bank of Australia’s rate-cut outlook.
The Australian stock market opened lower on Monday, dragged down by losses in mining stocks amid softer commodity prices. The S&P/ASX 200 index (XJO) fell 0.3% to 7,905.4 points, reversing Friday’s 0.2% gain.
Market participants are closely watching the upcoming inflation data, set for release on Wednesday, which could offer insights into the Reserve Bank of Australia's (RBA) potential interest rate trajectory ahead of its 1 April 2025 decision. The central bank had previously indicated that more positive inflation trends were needed before considering further rate cuts.
The materials sector (XMM) led the market downturn, sliding nearly 1% as iron ore and copper prices weakened. Major miners Rio Tinto (ASX:RIO), BHP Group (ASX:BHP), and Fortescue (ASX:FMG.) declined between 0.4% and 1.2%. Gold stocks (XGD) also retreated, shedding 0.7%, as a stronger U.S. dollar pressured bullion prices. Northern Star Resources (ASX:NST) slipped 0.4%.
Amid the broader market decline, financial stocks (XFJ) provided some support, rising 0.3%. Australia’s ‘Big Four’ banks—Commonwealth Bank, Westpac, ANZ, and NAB—gained between 0.02% and 0.6%.
Among individual stocks, James Hardie Industries (ASX:JHX) tumbled 10.4%, emerging as one of the top losers after announcing an $8.75 billion acquisition of U.S.-based AZEK Company (AZEK.N). Meanwhile, across the Tasman, New Zealand’s S&P/NZX 50 index (.NZ50) remained largely flat at 12,113.51 points.
In the dairy sector, Synlait Milk (ASX:SML) saw a sharp 10.9% drop after warning of slower financial progress in the second half of fiscal 2025, despite reporting a return to profitability in the first half.
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