FX.co ★ Australian Shares on 4-Day Decline

The S&P/ASX 200 index declined by 0.5% to close at 8,820 on Monday, marking its fourth straight session of losses and reaching a one-week low. The market downturn was primarily driven by significant sell-offs in the materials sector. Key mining firms, including BHP Group, Rio Tinto, and Fortescue Metals, led the market downwards, with shares dropping between 0.9% and 2.5%, as a result of lower prices in the iron ore and copper markets. Gold mining companies were notably affected, experiencing steep declines after a fall in gold prices. This was linked to reports of US President Trump’s intention to nominate Kevin Warsh as the new Federal Reserve Chair, who is generally viewed as a more hawkish candidate. Consequently, shares of Newmont Corporation, Evolution Mining, and Northern Star Resources plummeted between 6.2% and 7.8%. On the economic data front, the manufacturing PMI was adjusted to a five-month peak of 52.3 in January 2026, up from 51.6 in December. Market participants now eagerly await the Reserve Bank of Australia's (RBA) policy decision on Tuesday, with expectations leaning towards a 25 basis point interest rate increase to 3.85%, as the central bank seeks to address signs of intensifying inflationary pressures.