Australian shares slide on US tech rout and expected rate hike
Australian shares fell 51.6 points ahead of Tuesday's Reserve Bank decision, when an 80 per cent rate rise is widely expected.
The Australian stock market fell on Monday, with the ASX200 dropping 51.6 points to 8856.5 and the All Ordinaries shedding 48.2 points to 8977.2. The decline followed a heavy tech sell-off in the United States, where the Nasdaq fell 2.9 per cent after disappointing earnings from Intel and Amazon raised concerns about the returns on massive AI spending.
Markets were also cautious ahead of Tuesday's Reserve Bank decision, when a rate hike is widely expected to be the fifth in the current cycle. Analysts said investors are holding back from taking fresh risks until the decision is announced.
Eight of the ASX's eleven sectors finished lower, with consumer staples, mining and gold shares among the biggest losers.
- 51.6 points to 8856.5
- ASX200 drop
- 2.9 per cent
- Nasdaq fall
- 80 per cent
- Rate hike probability
- 8 of 11
- Sectors lower
Why it mattersAustralians with mortgages, loans or investments should understand what rate rises mean for their finances and the broader economy.
AustraliaHigher interest rates will increase mortgage costs for Australian homeowners and borrowers and affect the value of investments and savings.
Corroborated bysmh.com.au
✓ Claims checked against the source. checked 2 h ago
