FX.co ★ Australian Shares Flat to Start the Week

The S&P/ASX 200 opened steady at approximately 8,600 on Monday, pausing the upward trend from the previous session. This comes as investors prepare for an anticipated interest rate reduction by the Reserve Bank of Australia and the approaching US tariff deadlines. Market sentiment suggests a strong likelihood that the RBA will continue to loosen monetary policy, with a 95% probability of a 25 basis point cut expected on Tuesday—marking the third reduction this year. This move would lower the official cash rate to 3.6%, aimed at addressing diminishing inflation pressures and sluggish economic growth. Meanwhile, US President Trump confirmed that new tariffs will be instituted on August 1, with the final rates still under discussion. Treasury Secretary Bessent stated that nations lacking trade agreements by that date will revert to the tariff levels established on April 2. In terms of significant market movements, export-focused healthcare stocks increased over 1%, spearheaded by biotechnology leader CSL, which rose 1.2%. Conversely, Woodside saw a decline of 0.9% as OPEC+ indicated plans for increased output in August, sparking supply concerns that could impact prices.