FX.co ★ Australian Shares Open the Week in Red

On Monday, the ASX 200 declined by 0.2% to 8,851, continuing the previous week's downward trend, largely due to a slump in the financial sector. Leading banks experienced significant decreases: Westpac and National Australia Bank each dropped 1.2%, ANZ Group Holdings fell by 0.9%, and Commonwealth Bank of Australia decreased by 0.5%. This downturn was influenced by robust domestic economic data, which led market participants to revise their expectations for further monetary easing by the Reserve Bank of Australia (RBA). At present, there is an 80% likelihood being priced into the markets for a 25 basis point rate cut in November. Furthermore, energy stocks contributed to the index's decline, with Woodside Energy Group plummeting by 3.6% amidst declining oil prices, which are anticipated to exert continued pressure on the sector. This week, the domestic economic calendar is relatively sparse; however, investors are keeping an eye on upcoming data releases, including building permits, housing approvals, consumer confidence, and inflation expectations. Additionally, a scheduled address by an RBA official could provide further insights into the central bank’s policy direction.