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The Australian sharemarket saw a slight decline on Tuesday afternoon, with the S&P/ASX 200 index falling by 8.3 points, or 0.1%. This dip comes after the index had risen by 0.2% on Monday, reaching 8109.9, just shy of its record closing high set in late July.
Among the 11 sectors on the ASX, seven experienced losses, particularly in consumer-related and mining stocks. Major consumer stocks, including Coles Group Ltd (ASX:COL), Wesfarmers Ltd (ASX:WES), Woolworths Group Ltd (ASX:WOW), Endeavour Group Ltd (ASX:EDV), and Bega Cheese Ltd (ASX:BGA), were under pressure as they traded ex-dividend. Woolworths saw a notable decline of 3.2%, while Coles dropped 2.2%, Endeavour fell 2.4%, Bega retreated 2.2%, and Wesfarmers decreased by 1.1%.
Mining stocks also faced setbacks due to falling iron ore prices, which dropped below $US100 per tonne amid concerns about China's economic outlook. BHP Group Ltd (ASX:BHP) fell 0.8%, Rio Tinto Ltd (ASX:RIO) slumped 1.7%, and Fortescue Metals Group Ltd (ASX:FMG) lost 1.3%. Lithium explorers were hit hardest, with Mineral Resources Ltd (ASX:MIN) declining 5.1%, Lake Resources NL (ASX:LKE) retreating 2.4%, and IGO Ltd (ASX:IGO) down 3.2%. The lithium carbonate price fell by 0.8% to 74,050 yuan ($US10,397) in Shanghai.
On the other hand, gold miners experienced gains, with Bellevue Gold Ltd (ASX:BGL) increasing by 2.8%. Retailers Harvey Norman Holdings Ltd (ASX:HVN) and Lovisa Holdings Ltd (ASX:LOV) also performed well, rising 2.6% and 2.8% respectively.
The big four banks saw a reversal in early losses, with Commonwealth Bank of Australia (ASX:CBA) reaching a record high of $142.855, up 0.7%. The bank has surged 28% this year.
Local economic data released on Tuesday was mixed, casting uncertainty on the upcoming second-quarter gross domestic product (GDP) report. The current account deficit widened to $10.7 billion in the June quarter, exceeding forecasts. Net exports are expected to contribute 0.2 percentage points to GDP, less than the 0.6 percentage points anticipated. Government spending, however, is projected to add 0.4 percentage points to GDP.
GDP is expected to show a modest growth of 0.3% for the June quarter, following a 0.1% increase in the first quarter. Economists are expected to finalize their forecasts later today.
The Reserve Bank of Australia has raised the cash rate to 4.35% since 2022 to manage inflation, with no easing anticipated this year due to persistent high inflation. However, bond markets are suggesting a 73% chance of a rate cut by Christmas.
In corporate news, EML Payments Ltd (ASX:EML) saw a 4.3% increase following the completion of the sale of its Sentenial unit for $53 million. Additionally, AirTrunk’s owners have chosen Blackstone as the winning bidder in a competitive auction, which included other major players such as IFM Investors, DigitalBridge, Global Infrastructure Partners, Silver Lake, and Abu Dhabi's MGX.
