FX.co ★ ASX 200 Ends Lower as Banks, Miners Drag

The S&P/ASX 200 index experienced a decline of 0.7%, concluding Wednesday's trading session at 8,819. This downturn, which offset the previous session’s advances, was primarily due to the underperformance of banking and mining sectors. Investor sentiment turned cautious in anticipation of forthcoming employment data that could potentially influence the Reserve Bank of Australia's (RBA) policy direction. Recent domestic economic indicators, highlighted by the most rapid economic growth observed in nearly two years, suggest a mere 20% probability of an RBA rate cut this month. Attention is now focused on Thursday’s employment report, where recent robust data has diminished the likelihood of a rate cut in September, while maintaining a 70% probability of easing in November. On the global stage, markets are closely monitoring the Federal Reserve’s policy decision expected later today, with a widely anticipated 25 basis point cut—marking the first of 2025—already factored in by market participants. Additionally, the updated dot plot will be scrutinized for insights about possible future rate adjustments. Meanwhile, in Sydney, interest rate-sensitive financial stocks declined by 0.7%, with major players such as NAB and Westpac experiencing declines of 1.1% and 0.7% respectively. Key mining companies also reported close to a 1% drop amidst falling commodity prices, notably with BHP slipping 1.1% following its announcement to halt operations and lay off 750 employees at a coking coal mine in Queensland.