Sydney, January 20, 2026, 22:05 (AEDT) — Market closed.
- Australian shares slipped, the S&P/ASX 200 closing down 0.66% at 8,815.9.
- Commonwealth Bank dropped 1.81%, closing at A$150.48, while BHP fell 1.99% to A$47.78.
- Attention now turns to Thursday’s labour force report and the January 28 CPI data, both key ahead of the RBA’s Feb. 3 meeting.
Australian shares slipped on Tuesday, with the S&P/ASX 200 dropping 0.66% to 8,815.9. Heavy selling hit banks and miners hardest, dragging the index down 58.6 points from Monday’s close of 8,874.5.
The market suffered its steepest one-day decline since mid-December, hitting as traders began to reassess local rates. Financials dropped 1.1%, with the big four banks sliding between 0.9% and 1.8%. “The sector is losing steam as investors rotate out,” said Philip Pepe, senior equities analyst at Shaw and Partners. The Business Times
Trade headlines weighed on sentiment. U.S. President Donald Trump’s fresh tariff threat targeting European allies, sparked by tensions over Greenland, has reignited fears of a new wave of trade-war volatility. Reuters reported that proposed tariffs would kick in at 10% from Feb. 1 and jump to 25% on June 1.
Commonwealth Bank (CBA.AX), the largest stock on the market by value, led the declines in the banking sector, dropping 1.53% to A$150.91, according to IG data. National Australia Bank (NAB.AX) fell 0.87%, while ANZ (ANZ.AX) slid 0.80%. Westpac (WBC.AX) closed down 0.68%.
Miners led the rest of the moves. BHP (BHP.AX) confirmed it accepted lower iron ore prices in annual talks with China Mineral Resources Group, the state buyer, noting this “has seen some impact to realised price.” The company also warned its Jansen potash project investment estimate in Canada jumped 20% to $8.4 billion. On the production front, BHP hit a record first-half output of 146.6 million metric tons of iron ore. Reuters
BHP closed near A$47.78, as wider materials shares came under selling pressure late in the session.
In other stock-specific moves, Xero gained 3.56% and DroneShield added 3.74%, while ARB Corp fell sharply by 11.82% and Perenti dropped 6.31%, according to Investing.com data. The ASX 200 VIX, which measures expected market volatility through options, ticked up 2.12% to 10.84.
Utilities took the lead. Origin Energy jumped 2.62% after announcing it will keep New South Wales’ Eraring coal-fired power station operating through April 2029, effectively prolonging the lifespan of Australia’s biggest plant.
ARB slipped after releasing a market update. The four-wheel-drive accessories maker reported unaudited first-half sales revenue down 1% to A$358.0 million. It now forecasts an underlying profit before tax around A$58.0 million, a 16.3% drop from last year. The company pointed to margin pressures and said the half-year results will be out on Feb. 24.
The Australian dollar gained roughly 0.3%, reaching 67.37 U.S. cents, despite a pullback in equities.
The next move may depend more on the data than the tape. A stronger jobs report or hotter inflation figure would likely push rate-hike bets higher, posing challenges for banks and other rate-sensitive sectors. Conversely, softer numbers could ease the pressure fast.
Investors are turning their attention to the labour force report, set for release at 11:30 a.m. AEDT on Thursday (Jan. 22), followed by the December-quarter CPI data coming Wednesday (Jan. 28). These figures will feed into the Reserve Bank of Australia’s upcoming policy decision on Feb. 3.
