Westpac Slump Drags Australian Shares Lower Ahead of RBA Meeting

The lender reported cash earnings of A$1.8 billion for the quarter ending June 30, down from A$1.9 billion a year prior. Westpac’s outlook hit sentiment hard, as the bank warned that investor housing credit growth is set to halve next year, while mortgage application volumes have already contracted by 20%. This decline rippled through the sector, sending the financials sub-index down 1.9% and pressuring major peers including Commonwealth Bank of Australia, ANZ, and National Australia Bank, which saw losses between 1.3% and 2.4%.

Contrasting the banking malaise, the mining sector provided a cushion for the broader market, jumping 1.4% on the back of rising metal prices. Industry heavyweights BHP Group and Rio Tinto both climbed more than 1%, while gold miners saw a sharper rally; the gold sub-index surged over 3% to reach its highest level since mid-April. Separately, Treasury Wine Estates bucked the day's trend, surging nearly 8% after the winemaker announced inventory write-downs and a positive revision to its fiscal 2026 earnings forecast. Markets remain fixated on Tuesday's Reserve Bank of Australia meeting, where officials are widely expected to hold interest rates steady while providing guidance on the path forward for monetary policy.