S&P/ ASX 200 closes 0.58% lower at 8,856.5

The S&P/ASX 200 closed lower on Monday, November 2, 2026, as investors reduced risk ahead of the Reserve Bank of Australia's policy decision and digested weakness in US technology shares. The index finished at 8,856.5 points, down 51.6 points or 0.58% from Friday's close of 8,908.1.

PerthNow, citing NewsWire, reported that the Australian market showed signs of risk aversion before Tuesday's RBA meeting. The central bank was widely expected to raise interest rates again after recent inflation data increased pressure for tighter policy.

Staples and materials weigh on index

Eight of the ASX's 11 sectors finished lower. Consumer staples fell 1.39%, while materials declined 1.34%, according to PerthNow. Woolworths dropped 1.89% to 39.46 Australian dollars and Coles lost 1.75% to 21.28 Australian dollars. BHP fell 1.43% to 56.74 Australian dollars and Rio Tinto declined 1.17% to 145.59 Australian dollars.

Industrials rose 0.77% and consumer discretionary stocks gained 0.65%, limiting the broader decline. Transurban advanced 1.66% to 14.06 Australian dollars, while Guzman y Gomez rose 1.89% to 25.89 Australian dollars.

Rate decision remains the central focus

The market's attention now turns to the RBA's announcement scheduled for Tuesday afternoon in Sydney. The ABC reported that financial and mining stocks became drags during the session, while retailers moved in different directions. Westpac rose 1.01% after announcing a full-year profit of 6.8 billion Australian dollars, but the other major banks declined.

Friday's sell-off on Wall Street also shaped the backdrop. Concerns about heavy artificial-intelligence spending and uncertain returns pushed US technology stocks lower, adding to the cautious tone in Asian markets. The move in the ASX 200 should therefore be read as a broad risk-off session ahead of a major domestic policy event, rather than as a single-company-driven index move.

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