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ASX falls further as Commonwealth Bank cuts economic growth forecast
The ASX fell further after Commonwealth Bank cut its Australian economic growth forecast.
Key points
- The S&P/ASX 200 Index fell 53.4 points, or 0.6 per cent, to 8854.7 at 1.48pm AEDT on Monday.
- BHP and Rio Tinto both slumped more than 1.1 per cent, dragging the mining sector lower.
- Investors were bracing for a fifth interest rate rise on Tuesday amid fears of stubborn inflation.
Why it matters. Investors bracing for a fifth interest rate rise may keep pressure on the sharemarket while inflation stays stubborn, the source says.
The S&P/ASX 200 Index shed 53.4 points, or 0.6 per cent, to 8854.7 at 1.48pm AEDT on Monday as investors braced for a fifth interest rate rise on Tuesday. Mining stocks led the losses, with BHP and Rio Tinto both slumping more than 1.1 per cent. The index posted its biggest weekly gain since August on Friday but is up more than 2 per cent this year, lagging far behind Wall Street.
Latest updates
ASX falls further as Commonwealth Bank cuts economic growth forecast
The Australian share market extended its losses on Monday, ahead of a Reserve Bank of Australia meeting. The Commonwealth Bank and National Australia Bank both cut their economic growth forecasts for Australia. The downgrades weighed on sentiment as investors assessed the outlook for the economy and interest rates. Separately, 4DMedical shares rose sharply after the company blamed short sellers for a stock dive on Friday. Market moves are continuing through the trading session and the RBA decision is still to come.