Australia’s S&P/ASX 200 index falls 0.3% to 8,709.40 at close

Australia’s S&P/ASX 200 index falls 0.3% to 8,709.40 at close

The Australian S&P/ASX 200 index experienced a slight decline on Tuesday, July 22, 2025, closing at 8,709.40, a 0.3% drop from the previous close. This movement was influenced by various factors, including the anticipation of the Reserve Bank of Australia's (RBA) policy meeting minutes and the recent sharp plunge in mining and gold stocks.

The S&P/ASX 200 index rebounded after a significant 1% drop on Monday, July 21, 2025, which was the sharpest one-day fall since the market recovery following Donald Trump’s "Liberation Day" in early April 2025. The index's decline on Monday was largely driven by the big four banks, which saw a substantial sell-off ahead of their earnings results [1].

On Tuesday, the index was buoyed by positive developments in mining and gold stocks. Miners led the charge with a 2.4% rise, with top miners BHP and Rio Tinto climbing 2.5% and 2.2%, respectively. Gold stocks gained 3.1% after bullion prices hit a five-week high overnight. Meanwhile, financials and energy stocks declined, tracking weakness in oil prices [1].

The RBA is expected to release the minutes of its July policy meeting today, where it may offer insights into a rare split among policymakers before deciding to hold interest rates steady at 3.85%. A surprisingly soft jobs report in July has seen markets move to price a 90% chance that the central bank will cut rates next month [1].

In addition to the domestic market trends, the global stock market's latest rally to all-time highs has been primarily driven by retail investors. According to Barclays, retail traders have injected around $50 billion into global stocks in the last month alone, while JPMorgan predicts another $360 billion worth of stocks could be bought by retail investors through the end of 2025. This surge in retail trading has significantly contributed to the S&P 500's 26% climb since early April [2].

Overall, the Australian market's performance on Tuesday reflects a mix of domestic and global factors, with mining and gold stocks providing support while the anticipation of RBA minutes and the influence of retail investors played significant roles in shaping market sentiment.

References:
[1] https://economictimes.indiatimes.com/news/international/australia/asx-rebounds-after-sharp-plunge-a-day-before-miners-and-insignias-3-3-billion-takeover-news-power-stock-markets-rise/articleshow/122825125.cms
[2] https://www.ainvest.com/news/retail-traders-drive-stock-market-rally-time-highs-2507/