FX.co ★ Australia Stocks Kick off Week Lower

On Monday, Australian stocks declined by 0.3% to 8,316 during early trading, ending a period of gains seen over the previous eight sessions and stepping back from a high not achieved in almost three months as of last Friday. The S&P/ASX 200 Index mirrored a subdued performance in U.S. stock futures, influenced by worries concerning the government fiscal deficit after Moody's downgraded the U.S. credit rating to Aa1 on Friday. Investors exhibited caution in anticipation of several data releases from China expected later in the day, such as retail sales and industrial production figures. Offsetting the declines were expectations in the market that the Reserve Bank of Australia would lower the interest rate by 25 basis points at its meeting on Tuesday, spurred by stronger-than-anticipated employment data disclosed last week. The index was primarily pressured by the materials, consumer discretionary, industrials, and financial sectors, experiencing significant losses from companies like Paladin Energy (-8.0%), Mercury NZ (-4.1%), Contact Energy (-2.5%), Genesis Minerals (-2.3%), and WiseTech Global (-2.2%).