Tuesday 4th November 2025
Daily Market Update: 05 November 2025
ASX declines amid inflation concerns
The Australian sharemarket dropped to a near six-week low after Reserve Bank of Australia (RBA) Governor Michele Bullock flagged potential upside risks to inflation, causing concern among investors. Although the RBA kept the cash rate steady at 3.6 per cent, as widely anticipated, the S&P/ASX 200 Index (ASX: XJO) fell 81.1 points, or 0.9 per cent, closing at 8813.7. Ten of the 11 sectors ended in the red, led by utilities, marking the fifth drop in the past six sessions. The RBA’s more cautious tone, influenced by stronger-than-expected inflation data, prompted Morningstar’s investment chief Matt Wacher to suggest that rate cuts may be unlikely before the first half of 2026.
Utilities and materials drag market lower
Investor sentiment was further dampened by low trading activity due to the Melbourne Cup public holiday in Victoria. Origin Energy Limited (ASX: ORG) and AGL Energy Limited (ASX: AGL) declined 3.8 per cent and 3.7 per cent respectively, as federal government proposals to provide midday free power weighed on utilities. Falling iron ore prices impacted materials, with Rio Tinto Limited (ASX: RIO) down 2.6 per cent, Fortescue Metals Group Limited (ASX: FMG) down 2.7 per cent, and BHP Group Limited (ASX: BHP) shedding 1.9 per cent. In tech, NextDC Limited (ASX: NXT) rose 4.2 per cent, while WiseTech Global Limited (ASX: WTC), Xero Limited (ASX: XRO), Life360 Inc. (ASX: 360), and Block Inc. (ASX: SQ2) all posted losses. Notable company moves included a 10.6 per cent plunge in Novonix Limited (ASX: NVX) after a key agreement was cancelled, and a 3.6 per cent gain for Southern Cross Media Group Limited (ASX: SXL) following a favourable merger assessment.
Global tech pullback pressures Wall Street
In the United States, major indices retreated on Tuesday amid valuation concerns in tech-heavy sectors. The S&P 500 Index (NYSEARCA: SPY) dropped 1.1 per cent, the Nasdaq Composite Index (NASDAQ: IXIC) fell 2.1 per cent, and the Dow Jones Industrial Average (INDEXDJX: DJI) lost around 240 points. High-profile tech names such as Palantir Technologies Inc. (NYSE: PLTR), NVIDIA Corporation (NASDAQ: NVDA), Advanced Micro Devices Inc. (NASDAQ: AMD), and Oracle Corporation (NYSE: ORCL) led declines. Investor unease was compounded by warnings from Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS) executives about possible market corrections of 10 to 20 per cent. Despite the selloff, defensive sectors like consumer staples and financials outperformed, with Berkshire Hathaway Inc. (NYSE: BRK.A) gaining 3.3 per cent as investors sought safer assets.
| Australian Indices | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| ASX 200 | -0.9 | -2.2 | -1.9 | 2.8 | 11.9 |
| Financials | -0.3 | -0.8 | 0.9 | 6.7 | 20.6 |
| Resources | -2.2 | 1.3 | 2.3 | 17.6 | 17.3 |
| Information Technology | -0.9 | -3.5 | -8.3 | -4.6 | 12.7 |
| Global Indices | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| US 500 | -1.1 | 0.3 | 3.3 | 7.6 | 21.8 |
| Europe | -0.3 | -0.9 | -0.5 | 4.9 | 22.6 |
| Japan | 0.6 | 1.4 | 3.6 | 10.2 | 25.7 |
| China top 50 | 0.3 | -0.6 | -2.8 | 5.9 | 27.5 |
| India top 50 | 1.3 | 0.1 | 4.3 | 1.1 | 1.4 |
| Fixed Interest | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| Australian Treasury Bond | 0.0 | -0.9 | 0.1 | 0.2 | 5.6 |
| Australian Corporate Bond | 0.0 | -0.8 | 0.1 | 0.3 | 6.3 |
| US Treasury | 0.0 | -0.8 | 0.1 | 1.5 | 4.4 |
| Cash | 0.0 | 0.1 | 0.3 | 0.9 | 4.2 |
| Commodities & Crypto | Daily % | Weekly % | 1 Month % | 3 Month % | 1 Year % |
| Gold | -0.2 | 2.8 | 4.8 | 18.0 | 48.6 |
| Silver | -0.9 | 5.9 | 3.6 | 30.0 | 51.1 |
| Crude Oil | -0.2 | 1.5 | 1.2 | -5.0 | -3.4 |
| Bitcoin | -1.1 | -8.9 | -13.5 | -10.6 | 51.9 |
