FX.co ★ Australia Stocks Slip 0.6% at Finish

Australian stocks fell by 0.6% to conclude at 8,295 on Monday, reversing gains accumulated over the previous eight sessions and stepping back from the peak reached on Friday, the highest level in nearly three months. The S&P/ASX 200 Index mirrored a significant downturn in U.S. futures following Moody's downgrade of the U.S. credit rating to Aa1 last Friday, due to concerns regarding the government’s budget deficit. Additionally, mixed economic indicators from China influenced market sentiment: industrial production surpassed expectations, whereas retail sales came in below forecasts. Domestically, predictions of a potential 25 basis point interest rate cut by the Reserve Bank of Australia during Tuesday's meeting helped mitigate further losses. The index was largely pulled down by declines in materials, energy, and real estate sectors, with significant drops in Pilbara Minerals (-9.9%), Mineral Resources (-8.8%), Breville Group (-7.2%), New Hope Corp. (-7.6%), and Fortescue Metals (-4.9%).