Key facts
- Australian shares declined on Tuesday.
- Westpac's quarterly update revealed a 20% drop in mortgage applications.
- Westpac forecast investor housing credit growth to be halved.
- Financial stocks were weighed down by Westpac's update.
- Miners and gold miners gained.
- The market awaited the Reserve Bank of Australia's policy decision.
Australian shares experienced a decline on Tuesday, primarily influenced by the performance of financial stocks. Westpac's latest quarterly update revealed significant headwinds, including a 20% drop in mortgage applications. Furthermore, the bank forecast a substantial slowdown in investor housing credit growth, projecting it to be halved. This news had a ripple effect across the financial sector, weighing down the broader market. In contrast to the banking sector's struggles, mining and gold mining companies registered gains. This upward movement in the resources sector occurred as investors positioned themselves ahead of the Reserve Bank of Australia's (RBA) anticipated policy decision. The RBA's monetary policy announcement is a key event that often influences market sentiment and sector performance in Australia.