The Australian sharemarket opened the week on a softer footing as traders exercised caution ahead of Tuesday’s Reserve Bank of Australia policy meeting, where the central bank is widely expected to keep interest rates on hold.
The S&P/ASX 200 Index dipped 10.2 points or 0.1%, to close at 8,624.4, with six of the 11 sectors finishing in negative territory.
The session follows modest gains from United States benchmarks on Friday. The S&P 500 inched 0.2% higher on Friday but fell short of posting a fresh record after the Federal Reserve’s preferred inflation measure slightly undershot forecasts.
Markets expect the Fed to cut interest rates later this week following several weaker U.S. economic readings, although Treasury yields pushed higher, with the benchmark 10-year rising to 4.14%.
At home, attention remains firmly on RBA governor Michele Bullock, who is expected to strike a firmer tone on inflation risks during her post-meeting press conference on Tuesday.
Utilities led the declines, with Origin Energy down 1%, AGL falling 0.5% and Meridian Energy down 0.4%
Materials also finished lower as the major diversified miners traded in the red; Rio Tinto lost 0.9%, BHP dipped 0.8% and Fortescue eased 0.1%.
Gold producers faced pressure after spot gold softened at the end of last week; Northern Star lost 1.4%, Evolution Mining dipped 2.1% and Newmont closed 2.4% lower.
Lithium names were a standout, extending gains from Friday after UBS lifted its price forecasts for the battery metal.
Liontown surged 14.8%, while Pilbara Minerals jumped 6.1%.
Among individual moves, National Storage REIT advanced 2.2% after agreeing to a $4 billion takeover from a Brookfield–GIC consortium, offering security holders $2.86 in cash per stapled security.
TechnologyOne edged 0.4% higher after reassuring investors over the credentials of chief financial officer Cale Bennett, who previously held senior roles at Corporate Travel Management between 2019 and 2023.
Life360 slipped 3.8% after an SEC filing showed a director sold US$1.1 million worth of shares last week.
On the bond markets, yields remained elevated. The Australian 10-year held near 4.713%, its highest level since November 2023, while the 2-year rose to 3.978%, its highest since January 2025.
