ASX 200 closes 0.8% lower, mining sector leads decline

EditorOliver Gray
Published 27/11/2023, 04:45 pm
© Reuters
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Investing.com - The S&P/ASX 200 index experienced declines of 0.8% or 53.2 points to 6,987.6 during Monday's trading session, with losses in mining stocks leading the losses.

The materials sector emerged as one of the poorest performers, reflecting a dip in the iron ore price. Major ASX player BHP (ASX:BHP) saw a 1.5% drop, while Fortescue (ASX:FMG) Metals and Rio Tinto (ASX:RIO) experienced losses of 2.1% and 1.3% respectively.

Iron ore futures on the Singapore Exchange also traded lower, down 1.4% to $US132 a tonne on the December contract.

In other commodities, oil prices stabilized after a three-day fall, buoyed by indications that OPEC+ may intensify production cuts at its rescheduled meeting on Thursday. Brent hovered near $US81 a barrel, following a 2.3% decline over the previous three sessions.

Investors are keenly awaiting new inflation data and potential changes in oil production, which will significantly influence their predictions regarding the Reserve Bank's interest rate plans. Key events this week include the release of the monthly CPI data on Wednesday and the OPEC+ meeting concerning production cuts for 2024 on Thursday.

Despite the current dip, the S&P/ASX 200 is on track for its largest monthly surge since January, with a 3.8% increase. However, on a yearly basis, shares have merely returned to their starting levels, a stark contrast to the US where the S&P 500 and Nasdaq have seen year-to-date surges of 19% and 37% respectively.

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