Australian market climbs ahead of RBA decision
The Australian share market closed higher on Monday, supported by strong gains in the mining sector ahead of the Reserve Bank of Australia’s (RBA) interest rate decision. The S&P/ASX 200 Index gained 0.4 per cent to finish at 8844.80, while the All Ordinaries Index rose 0.5 per cent. Optimism over a potential third rate cut this year to 3.6 per cent fuelled investor sentiment, although analysts noted the RBA may hold steady given the 4.3 per cent unemployment rate. Eight of the ASX’s eleven industry groups finished higher, led by materials after Contemporary Amperex Technology Co. Limited (SHE: 300750) suspended production at a key lithium mine, triggering a rally in battery metal producers.

Mining surge offsets retail weakness
Lithium miners saw sharp gains, with Pilbara Minerals Limited (ASX: PLS) jumping 19.7 per cent, Liontown Resources Limited (ASX: LTR) up 18.3 per cent, and Mineral Resources Limited (ASX: MIN) climbing 12.2 per cent. Iron ore producers also rose after futures prices lifted in Singapore, with BHP Group Limited (ASX: BHP) up 1.6 per cent, Fortescue Metals Group Limited (ASX: FMG) adding 3 per cent, and Rio Tinto Limited (ASX: RIO) gaining 1.5 per cent. Financials were mixed, with Westpac Banking Corporation (ASX: WBC) up 1.9 per cent, while insurers such as Insurance Australia Group Limited (ASX: IAG) and Suncorp Group Limited (ASX: SUN) fell sharply. In consumer stocks, JB Hi-Fi Limited (ASX: JBH)tumbled 8.4 per cent after CEO Terry Smart’s resignation, overshadowing results, while Wesfarmers Limited (ASX: WES) and Eagers Automotive Limited (ASX: APE) also declined.

US markets ease as key data approaches
On Wall Street, US stocks slipped ahead of a week of key economic releases and geopolitical developments. The S&P 500 Index fell 0.2 per cent, the Dow Jones Industrial Average lost 199 points, and the Nasdaq 100 Index dropped 0.3 per cent following strong gains last week. Investors are awaiting July’s Consumer Price Index on Tuesday and Producer Price Index on Thursday, both critical for the Federal Reserve’s September rate decision, with markets expecting a rate cut. Trade tensions persisted despite US President Donald Trump extending a 90-day tariff pause on Chinese goods and securing a deal for NVIDIA Corporation (NASDAQ: NVDA) and Advanced Micro Devices, Inc. (NASDAQ: AMD) to remit 15 per cent of revenue from certain AI chip sales to China. Tech stocks were mixed, with Intel Corporation (NASDAQ: INTC) and Micron Technology, Inc. (NASDAQ: MU) advancing, while Apple Inc. (NASDAQ: AAPL) fell 1.4 per cent after its strongest week in over five years.