AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- ASX opens lower as investors await the Reserve Bank of Australia’s rate decision.
- Technology stocks experience the steepest declines, with some standout company news.
- Domino’s and Mineral Resources lead movements following executive changes.
The Australian stock market began Tuesday with a slight decline, reflecting cautious sentiment and mirroring losses seen on Wall Street. The S&P/ASX 200 Index shed 22 points, or 0.3 percent, reaching 8142.5 points. Technology stocks took the largest hit, down by 1.2 percent. The market appears cautious ahead of the Reserve Bank of Australia’s (RBA) upcoming decision on interest rates, expected later in the day.
In the U.S., markets saw a similar pullback, with stocks retreating, bonds climbing, and the dollar declining. This movement came in anticipation of the start of the U.S. presidential election process, with Tuesday marking the official start. The tight race between the candidates has raised concerns about potential election uncertainties that could influence market volatility. Economist Brian Martin from ANZ Research noted, “The so-called ‘Trump trade’ unwound ahead of what’s looking like a very close presidential race.” Current polling and market sentiment suggest that a close outcome could prolong uncertainty, which may lead to increased market fluctuations.
For Australian investors, the RBA’s meeting remains the top focus. The central bank is expected to maintain the current interest rates for the seventh consecutive session. The RBA's last action, a rate increase, was in November 2023. Markets are watching closely to see if any surprise announcement could influence investor sentiment and the economic outlook.
Stocks in the Spotlight
In corporate news, Domino’s Pizza (ASX:DMP) saw a sharp 4.5 percent drop to $34.20. This followed the announcement that Don Meij, CEO of 22 years, would step down. The company also highlighted ongoing struggles with same-store sales, noting weaker-than-expected figures for the first 17 weeks of the current financial year.
Mineral Resources (ASX:MIN), on the other hand, showed resilience. After falling nearly 10 percent the previous day to $36.70, the stock recovered 2.8 percent to $37.72. This rebound followed news that founder Chris Ellison plans to depart over the next 18 months. The company confirmed that Ellison had faced scrutiny from the board over his use of company assets for personal benefit.
In addition, FireFly Metals (ASX:FFM) gained attention after RBC Capital Markets initiated coverage, contributing to a 1.6 percent increase in its stock price, reaching $1.29.
As the day progresses, market participants remain attentive to the RBA's decision, keeping a close watch on any developments that could impact stock movements and broader economic sentiment.
