ASX (ASX: XJO) Edges Lower; RBA's (ASX: RBA) November Rate Cut on the Table

August 06, 2024 10:40 AM AEST | By Team Kalkine Media

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ASX (ASX: XJO) Edges Lower; RBA's (ASX: RBA) November Rate Cut on the Table — Image source: shutterstock

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Highlights:

Market Decline: The S&P/ASX 200 Index (ASX:XJO) fell 0.2% to 7,631.5, continuing a downward trend following a 3.7% drop the previous day.

Sector Performance: Energy stocks led the decline, with Woodside Energy Group Ltd (ASX:WDS) down 4.3%, reflecting lower crude oil prices.

Commodity and Crypto Slumps: Commodities like copper and oil fell, and Bitcoin dropped 9.5% to $US53,801, as global economic concerns prompted a rush to liquidate profitable positions.

The Australian sharemarket showed a slight downturn on Tuesday, with the S&P/ASX 200 Index (ASX:XJO) decreasing by 0.2%, or 18.1 points, to 7,631.5 by 10:18 AM AEST. This modest decline followed a particularly volatile session on Monday, where the index dropped significantly by 3.7%. This sharp decline was the largest since the market upheavals during the COVID-19 pandemic in 2020, driven by growing concerns over a potential recession in the US.

Energy stocks, in particular, were among the hardest hit, largely due to falling crude oil prices. This sector fell by 1.9%, with Woodside Energy Group Ltd (ASX:WDS) experiencing a 4.3% drop. The downturn in energy stocks reflects broader market challenges, including a substantial drop in commodity prices such as copper, gold, and oil. This decline in commodity prices is largely attributed to a pessimistic economic outlook, which has led to reduced industrial demand and heightened market volatility.

As investors navigate these turbulent times, they are also closely watching the Reserve Bank of Australia's (ASX:RBA) upcoming policy announcement scheduled for 2:30 PM AEST. Analysts expect the central bank to maintain the current interest rates, given the prevailing economic uncertainty. This decision will be crucial in shaping investor sentiment and market dynamics in the near term.

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