The ASX 200 fell 31 points, or 0.3%, to close at 9,233 on Monday, posting a second straight decline as weakness in financials, consumer durables, and industrial services dragged on the market. Investor sentiment remained cautious ahead of the Reserve Bank of Australia's monetary policy decision. While markets widely expect the cash rate to stay at 4.35% following three hikes earlier this year, inflation risks persist amid ongoing geopolitical uncertainty.
Financial stocks were under particular pressure, led by a 5.4% drop in Westpac after the bank warned that investor housing credit growth would halve next year and reported a 20% fall in mortgage applications, alongside softer quarterly cash earnings of AUD 1.8 billion. Other major lenders, including ANZ, Commonwealth Bank, and NAB, also lost around 2%.
Losses were partially offset by gains in the resources sector, supported by firm metals prices: BHP advanced 1.2%, while Rio Tinto rose 0.6%. Elsewhere, Treasury Wine Estates rallied 4.8% after unveiling plans to scale back its U.S. North Coast vintages from 2026 and to write down bulk wine inventories.
