Australian Patience Wears Thin as Market Extends Tuesday Sell-Off

The Australian stock market’s downward momentum persists through mid-day Tuesday trading, erasing the previous session’s modest gains as Wall Street’s overnight weakness cascades into Asia-Pacific equities. Patience is being tested across portfolios, with the S&P/ASX 200 sliding 133 points—or 1.54%—to settle near 8,503.40, while the broader All Ordinaries Index declined 138.80 points or 1.56% to 8,776.90.

Mining Sector Bears the Brunt

The mining complex is leading the retreat, with significant players under pressure. BHP Group is down more than 3%, Fortescue has shed nearly 2%, and Rio Tinto is slipping over 2%, while Mineral Resources falls more than 1%. The energy space tells a similar story, as Woodside Energy and Origin Energy each decline almost 2%, with Santos and Beach Energy shedding more than 1% each. Gold miners face comparable headwinds: Northern Star Resources and Evolution Mining lose almost 3% each, Genesis Minerals drops over 2%, Newmont edges down nearly 2%, and Resolute Mining slips 0.5%.

Technology Sector Accelerates Losses

Tech stocks are amplifying the selloff. Block (Afterpay’s parent) retreats nearly 3%, Zip tumbles almost 5%, Appen slides over 2%, WiseTech Global plunges more than 5%, and Xero falls nearly 4%. The sector’s weakness reflects broader concerns about growth momentum.

Banking Sector Under Pressure

The Big Four banks show consistent weakness, testing investors’ patience. Commonwealth Bank and National Australia Bank each decline almost 2%, while Westpac is down more than 2% and ANZ Banking falls nearly 1%.

Mixed Signals in Individual Equities

Not all names are capitulating. James Hardie surges more than 7% following upgraded full-year guidance and upbeat second-quarter results. Plenti Group soars over 7% after reporting record loan originations across divisions. However, TechnologyOne tumbles more than 17% despite announcing a 10-cent special dividend and reporting a 17% profit rise—a reminder that growth expectations can disappoint even with solid results.

RBA Signals Patience on Rate Cuts

The Reserve Bank of Australia’s November 4 monetary policy minutes, released Tuesday, suggest further patience before additional stimulus measures. The RBA maintained its cash rate at 3.60%—the lowest level since March 2023—following cuts of 25 basis points each in August, May, and February. Board members noted expectations for slower economic growth in H2 2025, though acknowledged residual inflationary pressures that argue for measured policy adjustments. Should labor market conditions deteriorate further, downside policy moves remain on the table, though the path forward remains data-dependent.

Macro Backdrop Weighs on Sentiment

The RBA minutes revealed concerns that consumer price growth exceeded expectations in the September quarter, complicating the case for aggressive rate cuts. Board members also emphasized the shift in growth composition from public to private demand, signaling uncertainty about the economy’s trajectory. In currency markets, the Australian dollar traded at $0.649, reflecting broader risk-off sentiment. Investors’ patience with the recovery narrative continues to wear thin.