FX.co ★ Australian Shares Extend Losses

On Thursday, the S&P/ASX 200 index declined marginally by 0.2% to approximately 8,900, furthering its almost 1% drop from the prior session, reaching a two-week low. This downturn was largely influenced by declines in the real estate and consumer discretionary sectors. Specifically, real estate stocks fell by 2.8% for the second consecutive session, significantly impacted by a 4.3% decrease in Stockland Corporation. Similarly, consumer discretionary stocks weakened, descending by 2.4%, as JB Hi-Fi saw a dramatic 7.4% drop, reaching its lowest in nearly three months, after reporting a notable slowdown in quarterly sales in both Australia and New Zealand. Conversely, there was a positive performance in the mining sector, with major players like BHP and Rio Tinto both rising by 1.1%, bolstered by copper prices reaching unprecedented highs. Overall, market sentiment remained cautious. This cautious tone stemmed from traders reducing their expectations for a rate cut by the Reserve Bank of Australia in the following week, in response to an unexpected inflation surge in the third quarter. The market has almost fully anticipated a rate hold at 3.60%, with interest rate futures indicating less than a 7% probability of a cut at the RBA's upcoming meeting on November 4.