Australia's ASX 200 slips as rate hike concerns weigh on sentiment

Australia?s stock market ended lower on Monday, with the S&P/ASX 200 falling 33 points, or 0.4%, to close at 8,697. The decline came after recent gains, as investors grew cautious ahead of the Reserve Bank of Australia?s upcoming policy decision, where a third straight interest rate hike is possible due to persistent inflation.

Market participants are also watching for March trade data. Earlier figures showed exports rising in February, while imports declined. Domestic data painted a mixed picture, with building permits dropping sharply by 10.5% month-on-month after a previous rebound, and job advertisements falling for a second consecutive month, though at a slower pace.

Globally, sentiment was slightly supported as U.S. stock futures edged higher following comments from Donald Trump about efforts to release ships stuck in the Strait of Hormuz.

On the ASX, losses were led by sectors such as consumer non-durables, energy, process industries, and retail. However, gains in industrial services, consumer durables, and healthcare helped limit the overall decline. Major stocks like Woodside Energy, Coles Group, Origin Energy, and Insurance Australia Group recorded notable losses, while two of the four big banks also closed lower.

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