Australia Stock Market Today: ASX 200 Slips as RBA Hawkish Turn Lifts Miners but Hits Banks and Tech (10 December 2025)

Australian shares eased lower on Wednesday as investors digested a surprisingly hawkish Reserve Bank of Australia (RBA) and braced for a key US Federal Reserve decision, even while gold and mining stocks surged.

ASX 200 Today: Key Numbers at the Close

Australia’s benchmark S&P/ASX 200 index finished down 6.5 points, or 0.08%, at 8,579.40 on Wednesday, 10 December 2025. ^[1]

Other major indices:

All Ordinaries: 8,868.2, down 0.09% ^[2]
Small Ordinaries: 3,655.8, up 0.25%
Emerging Companies Index: 2,866.6, up 1.31% ^[3]

According to data from Investing.com and Yahoo Finance, today’s trading range for the ASX 200 was 8,562.1 to 8,611.1, within a 52‑week band of roughly 7,169 to 9,115. ^[4]

Despite the modest dip, the index remains up about 5% year-to-date, leaving Australian equities on track for a third consecutive year of gains, albeit lagging many global peers. ^[5]

Why Australian Shares Slipped: RBA Hangover Meets Fed Uncertainty

Wednesday’s session was dominated by the aftershocks of Tuesday’s RBA meeting and nervous anticipation of the US Federal Reserve’s rate decision due overnight (US time).

RBA: Easing Cycle Over, Hike Risk Back on the Table

On Tuesday, the RBA left the cash rate on hold at 3.6% but made it clear that further cuts are off the agenda “for the foreseeable future”, and that rate increases in 2026 remain possible if inflation stays sticky. ^[6]

Market reaction has been sharp:

Interest rate swaps now imply about a 30% chance of a 25 bps hike by February, and almost a full hike priced by May, according to Reuters. ^[7]
The 2‑year Australian government bond yield has pushed to a 13‑month high, widening the yield gap versus US Treasuries. ^[8]
The Australian dollar is hovering around US$0.664, supported by the RBA’s hawkish tilt and solid Chinese trade data. ^[9]

Currency strategists at Sharecafe and LiteFinance describe the RBA as one of the more hawkish central banks in the G10, with futures markets expecting around 30–31 bps of tightening into 2026 and seeing scope for AUD/USD to grind toward the 0.67–0.68 region if global risk appetite holds. ^[10]

Fed: A Third Rate Cut, but What Then?

Globally, sentiment is being shaped by the US Federal Reserve, which is widely expected to cut interest rates for the third time this year later on Wednesday (US time). ^[11]

The CME FedWatch tool shows close to 90% odds of a 25 bps cut, according to RTTNews. ^[12]
The bigger question is the path for 2026: Fed officials remain split on whether stubborn inflation or a cooling labour market is the bigger risk, and markets fear a hawkish message could trim hopes of further easing next year. ^[13]

Against that backdrop, global markets traded cautiously, and Asian benchmarks mostly drifted lower, with Australia’s ASX 200 “slipping nearly 0.1% to 8,579.40” in AP’s regional wrap. ^[14]

Sector Snapshot: Miners and Gold Shine, Banks and Tech Drag

Although the headline move for the ASX 200 was small, sector performance was anything but flat.

Data from MarketIndex and The Economic Times show that 9 of 11 sectors ended the day in the red, with materials the clear standout gainer. ^[15]

Winners: Materials and Gold Stocks

The materials sector rose around 1.3%, the best on the market. ^[16]
Reuters notes that miners snapped a two‑day losing streak to gain about 1.5%, helped by stronger iron ore prices after surprisingly firm Chinese inflation data. ^[17]
Heavyweights BHP, Rio Tinto and Fortescue added 0.3–0.9%. ^[18]

The real fireworks were in precious metals:

A MarketIndex wrap shows the gold sub-index up around 4.1%, its best session in about two months, as gold traded near record highs above US$4,200/oz. ^[19]
News.com.au and The Australian highlight a “record run” in silver, with silver prices now above US$60/oz, fuelling sharp gains in silver‑exposed miners. ^[20]

Among gold and precious‑metals names:

Ramelius Resources jumped around 5–7% after announcing a $250 million on‑market buyback and a more generous dividend policy, putting it near the top of the large‑cap leaderboard. ^[21]
Northern Star Resources added just over 5%, while a pack of gold miners such as Westgold, Bellevue Gold, Evolution and Genesis logged gains of 3–5% intraday. ^[22]

Laggards: Banks, Tech, Real Estate and Energy

Rate‑sensitive and growth sectors bore the brunt of the RBA’s hawkish message and soaring bond yields:

Financials slipped about 0.3–0.4%, with Reuters pointing to Commonwealth Bank falling around 0.5% and other majors mixed. ^[23]
Information technology was the worst‑performing sector, down about 1.5%. MarketIndex notes that the All Tech index slid more than 1.4%, underscoring how higher long‑term yields pressure growth valuations. ^[24]
Real estate investment trusts (A‑REITs) fell roughly 0.6–0.7%, as rising discount rates weighed on property valuations. ^[25]
Industrials dropped around 0.8%, and energy slid about 0.8% amid softer oil prices and concern about global growth. ^[26]

Consumer sectors were mixed:

Consumer discretionaries edged lower, reflecting lingering worries about household budgets and high interest costs. ^[27]
Consumer staples were roughly flat to slightly positive, acting as a defensive haven. ^[28]

Biggest ASX 200 Stock Moves on 10 December 2025

Standout Gainers

Across the index, the day’s most eye‑catching moves came from defence tech and resources names.

According to The Economic Times, Proactive snippets and ABC’s intraday data, today’s top performers included: ^[29]

DroneShield (DRO):
The defence‑tech company soared around 16% to about $2.26, topping the ASX 200 leaderboard. The move extends a powerful rally driven by rising demand for counter‑drone systems amid heightened geopolitical tensions and steady contract wins. ^[30]
Dalrymple Bay Infrastructure (DBI):
The coal‑port operator climbed more than 6% to around $4.83, as investors continued to favour infrastructure‑style yield plays backed by long‑term take‑or‑pay contracts, even in a higher‑rate environment. ^[31]
Ramelius Resources (RMS) & other gold miners:
Ramelius gained around 5–7% on its buyback and dividend upgrade, while peers such as Northern Star and Westgold rallied strongly as gold and silver prices surged. ^[32]
St Barbara (SBM):
News.com.au reports St Barbara shares jumped nearly 11% after it secured roughly $470 million to expand its Touquoy gold mine, reinforcing the bullish sentiment across the gold complex. ^[33]

Several lithium and base‑metals names also advanced, helped by firm commodity prices and optimism around China’s ongoing stimulus efforts. ^[34]

Biggest Losers

On the downside, the worst of the damage was concentrated in growth and consumer‑facing stocks.

The Economic Times lists the following among today’s largest ASX 200 decliners: ^[35]

Reliance Worldwide Corporation (RWC): down just over 5% to about $3.75
Iluka Resources (ILU): lower by roughly 4.6% to $5.84, extending weakness in mineral sands names
Pro Medicus (PME): off a little over 4%, reversing part of its stellar multi‑year run
Breville Group (BRG): down around 3.3%
Temple & Webster (TPW): about 3% weaker

ABC’s live blog also flagged Pro Medicus and Iluka as the worst intraday underperformers, underscoring how high‑multiple growth and cyclical resource names remain volatile. ^[36]

Meanwhile, Bapcor stayed under scrutiny after its brutal 20–21% plunge on Tuesday, triggered by a second profit downgrade and guidance for a first‑half loss. Multiple outlets, including the AFR, Sharecafe and others, detail how the auto‑parts retailer’s share price is now down around 60% year‑to‑date and facing serious balance‑sheet questions. ^[37]

How Today Fits into the Bigger Picture for the ASX 200

Valuations Elevated, Leadership Narrow

Fresh research from IG’s 2026 ASX 200 outlook notes that:

With the index trading around 8,600, the market is up roughly 5.4% for 2025, but has lagged Wall Street and parts of Europe. ^[38]
The materials, industrials and utilities sectors have been top performers this year, while health care and information technology are the only sectors in negative territory for 2025. ^[39]
The ASX 200’s 12‑month forward P/E sits at about 18.1x, well above its long‑term average near 14.8x, leaving limited room for disappointment on earnings or policy. ^[40]

In short, the market is not cheap, and leadership remains concentrated in miners and a handful of defensives, even as banks and tech suffer from the RBA’s hawkish pivot.

Technical and Macro Outlook into 2026

From a technical standpoint, IG’s analysis highlights that:

After hitting an all‑time high around 9,115 in mid‑October, the ASX 200 pulled back to roughly 8,383 in late November, a 7.7% correction. ^[41]
Provided that 8,383 holds as a medium‑term low, IG’s base case sees the index retesting the 8,850 area by the end of 2025, and then climbing toward 9,300–9,500 by the end of 2026. ^[42]

On the macro side, IG and other strategists emphasise:

GDP: Australian growth was tracking around 1.8% year‑on‑year in mid‑2025, with the RBA expecting it to stabilise close to 2% in 2026. ^[43]
Inflation: After briefly falling back into the RBA’s 2–3% target band, underlying inflation has re‑accelerated, and the Bank now sees core inflation near 3.2% in early 2026, easing to about 2.7% by year‑end. ^[44]
Labour market: Unemployment has ticked up from 4.1% to around 4.3%, but remains low by historical standards. The RBA expects it to hover around 4.4% in 2026–27. ^[45]

LiteFinance’s AUD strategy piece adds that Australia’s relatively high real yields and strong Chinese industrial output are supporting risk assets and the Australian dollar, but the future path of domestic inflation will ultimately determine whether the RBA delivers the rate hikes now being priced in. ^[46]

What Investors Are Watching After Today’s Close

For traders and longer‑term investors scanning the Australia stock market today, several themes stand out:

Rates vs Growth:
- The RBA’s hawkish turn is clearly pressuring banks, REITs and long‑duration tech names, while supporting the Aussie dollar and bond yields.
- Whether future data justify the market’s expectation of a 2026 hike will be critical for these sectors. ^[47]
Commodities and China:
- Gold and silver at or near record highs, plus stronger‑than‑expected Chinese trade and production data, are underpinning the materials sector, which many strategists expect to remain a relative outperformer into 2026. ^[48]
Valuation Risk:
- With the ASX 200 trading on a stretched forward multiple and earnings growth modest, any negative surprise—whether from the Fed, the RBA, or corporate earnings—could prompt sharper pullbacks than today’s mild drift lower. ^[49]
Fed Guidance Tonight:
- A dovish cut from the Fed could ease global financial conditions and support risk assets, including Australian equities.
- A more hawkish message, stressing limits to 2026 rate cuts, could reinforce the “higher‑for‑longer” narrative that already weighed on banks and tech today. ^[50]

Bottom Line

On 10 December 2025, the Australia stock market delivered a quiet headline move but noisy internals:

The ASX 200 dipped just 0.08% to 8,579.4, extending Tuesday’s RBA‑induced sell‑off without triggering fresh panic. ^[51]
Miners, gold and silver stocks were clear winners, while banks, tech, REITs and consumer names remained under pressure from higher bond yields and stretched valuations. ^[52]
Forward‑looking analysis from IG and others suggests modest upside for the ASX 200 into 2026, but from an already elevated base and amid considerable policy and inflation uncertainty. ^[53]

For now, the key for investors is less about today’s tiny 6.5‑point dip and more about what the RBA and Fed say next—and whether commodities can keep carrying the load for an index that increasingly leans on miners and gold for its gains.

This article is for general information only and does not constitute financial advice. Always consider your own objectives and consult a licensed adviser before making investment decisions.