On Monday, the S&P/ASX 200 index saw a decline of 0.7%, closing at 8,693, after hitting an all-time high in the previous session. Investor sentiment turned cautious as the market awaited the release of the Reserve Bank of Australia (RBA) meeting minutes and an upcoming speech by the Governor, Michele Bullock. This development follows the RBA's unexpected decision to maintain the cash rate at 3.85% during its July policy meeting, countering market expectations of a 25 basis point reduction. Economists anticipate the RBA will commence easing policies later this year, projecting the cash rate to drop to approximately 3.1% by early 2026, bolstered by stable labor market conditions and a cautiously optimistic growth forecast.
In the realm of international trade, concerns were amplified as Treasurer Jim Chalmers addressed the potential for the United States to impose tariffs as high as 200% on pharmaceutical goods.
On the corporate front, financial stocks exerted downward pressure on the index, notably with Westpac Banking Corporation falling 1.5%, leading declines in the sector. Conversely, Block Inc. experienced a significant surge, jumping 10.6% to reach a five-month high following the announcement of its inclusion in the S&P 500 index.
