FX.co ★ Aussie Stocks End Lower as Banks Drag

On Wednesday, the S&P/ASX 200 index declined by 0.3%, closing at 8,448—its lowest point since early June—as the financial sector's losses surpassed the gains recorded in the mining sector. Specifically, the financial sector fell by 1.2% to hit a six-month low due to challenges such as margin pressure, increased competition, and rising operational costs. All of the “Big Four” banks experienced declines; however, this decline is interpreted as a strategic shift focusing on disciplined valuation and growth-oriented investments. The technology sector also saw a reduction of 0.5%, maintaining levels near those observed in late April. Conversely, gold mining companies experienced a 2.3% increase, marking their most significant gain in a week, while the broader mining index climbed 0.8% as metal prices rose. Additionally, recent data indicated steady wage growth during the third quarter, reinforcing the expectation that the Reserve Bank of Australia is likely to maintain its current interest rates. Presently, traders estimate a 90% likelihood of no rate adjustments during the December meeting.