In Australia, the ASX 200 Index fell 0.28%. Gold shines, but bank troubles weigh heavily: How RBA interest rate levels impact the ASX outlook.
ANZ (ANZ) and National Australia Bank (NAB) posted losses of 0.83% and 0.68% respectively, while the Commonwealth Bank of Australia (CBA) also struggled.
Sentiment towards the RBA rate path impacted demand for Australian banking shares. On Thursday, RBA Governor Michele Bullock lowered expectations of a rate cut in the first quarter of 2025, which could impact credit demand. Falling demand for credit could impact banks’ profits.
Meanwhile, Northern Star Resources Ltd. rose. (NST) rose 0.58% as gold prices rose 0.78% to $2,659 during the morning session.
Outlook
Market participants should monitor developments in Chinese stimulus, central bank policy signals and US trade news. Positive talk from Beijing could offset concerns about tariffs. However, RBA and BoJ interest rate path sentiment remains critical to ASX 200 and Nikkei index trends.