The S&P/ASX 200 fell 0.5% to around 8,754 on Wednesday, reversing gains after reaching its highest level in over a month, following the Reserve Bank of Australia’s December meeting minutes. The minutes showed policymakers weighing a potential 2026 rate hike, while RBA Governor Bullock signaled a hawkish stance, warning hikes may be needed if inflation persists. Financials weighed on the index, with Commonwealth Bank of Australia (-0.6%), Westpac Banking Corporation (-0.7%), National Australia Bank (-0.7%), and ANZ Banking Group (-1.0%) posting losses amid stretched valuations and potential pressure from higher interest rates. Technology shares also retreated, with Xero down 2.0% and WiseTech Global slipping 0.2%. Meanwhile, mining stocks provided support on firmer commodity prices, with Rio Tinto (0.9%) and BHP Group (0.1%) benefiting from record-high copper and gold prices. Trading activity remained subdued ahead of the Christmas holiday.
