3 weeks ago
Australian shares dip as Westpac weighs on banks before RBA
Australia is a country with a big stock market where people buy and sell small pieces of companies, called shares.
On Monday, the value of many shares went down a little bit.
One of Australia's big banks, Westpac, told investors that its business is slowing down.
Fewer people asked the bank for home loans, and the bank thinks its housing loans will grow half as much next year.
Because of that, Westpac's shares dropped a lot, and other banks dropped too.
But some other companies did well, especially the ones that dig metals and gold out of the ground.
A big wine company called Treasury Wine Estates also shared good news, so its shares went up.
The small dip came after the market gained 3.2% last week.
On Tuesday, Australia's central bank, called the RBA, will decide whether to change interest rates.
Most people expect it to keep rates the same.
Australian shares slipped 0.5%, with the S&P/ASX 200 at 9,220.30 points as of 0057 GMT on Monday.
Westpac shares fell more than 5%, their biggest intraday drop since March 30, dragging the financials sub-index down 1.9%.
Westpac reported a 20% fall in mortgage applications and forecast investor housing credit growth would halve next year.
Miners jumped 1.4% on strong metal prices, while gold miners Evolution Mining and St Barbara rose 1.3% and 4.7%.
The Reserve Bank of Australia's policy decision is due Tuesday, with markets widely expecting interest rates to remain unchanged.
- Who
- Westpac, Australia's other major banks (Commonwealth Bank of Australia, ANZ, National Australia Bank), mining giants BHP Group, Rio Tinto and Fortescue, and Treasury Wine Estates, with the Reserve Bank of Australia in focus.
- What
- Australian shares dipped 0.5% as Westpac's weak quarterly update dragged on bank stocks, offset by gains in miners on strong metal prices.
- Where
- Australia's S&P/ASX 200 market; New Zealand's S&P/NZX 50 also rose 0.5%.
- When
- Monday, August 10 (as of 0057 GMT), ahead of the Reserve Bank of Australia's policy decision due Tuesday.
- Why
- Investors assessed Westpac's softer earnings and housing loan outlook while awaiting the RBA's interest rate decision.
Key facts
- Market index
- S&P/ASX 200 down 0.5% at 9,220.30 points; benchmark gained 3.2% last week
- Westpac shares
- Fell more than 5%, biggest intraday drop since March 30
- Westpac cash earnings
- A$1.8 billion for quarter ended June 30, down from A$1.9 billion a year earlier
- Housing loans
- Mortgage applications down 20%; investor housing credit growth forecast to halve next year
- Financials sub-index
- Down 1.9%; Commonwealth Bank of Australia, ANZ and National Australia Bank fell between 1.3% and 2.4%
- Miners and gold
- Miners up 1.4%; gold sub-index up more than 3%, highest since mid-April
- Treasury Wine Estates
- Shares up nearly 8%; FY26 EBITS forecast A$492.3 million vs prior A$480-A$490 million range; to cut U.S. North Coast vintages from 2026
- RBA decision
- Due Tuesday; rates widely expected to stay unchanged
Sources
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