Summary of Australian Sharemarket News (February 2, 2026)
The Australian sharemarket kicked off the week on a notably negative note, marking its steepest decline in the last two months. On Monday, February 2, 2026, the S&P/ASX 200 index fell by 90.50 points, or 1.02%, closing at 8,778.60 points, a level not seen since January 12. This reaction was largely attributed to declines in precious and base metal mining stocks, as well as investor apprehension surrounding an anticipated interest rate hike by the Reserve Bank of Australia (RBA) later in the week.
Performance Overview
Despite a strong performance in January—where the benchmark gained 1.8%, its best monthly increase since August 2025—the market showed signs of volatility leading into February. Over the previous five days, the ASX 200 has seen a decline of 0.92% but remains approximately unchanged for the year thus far.
Among the laggards on the ASX 200, GRAINCORP LIMITED and NEWMONT CORPORATION experienced substantial drops, recorded at 14.03% and 10.00% respectively. This significant downswing highlights the challenges faced by the resources sector, particularly in responses to broader economic indicators and forecasts.
Gold Miners Hit Hard
One of the hardest-hit sectors was that of gold mining, which experienced its worst trading day since late October, plummeting by as much as 8.9%. Notable companies such as Northern Star Resources and Evolution Mining saw their stock prices decrease by 8% and 5%, respectively. The fallout was triggered by recent adjustments in margin requirements for precious metals set by the CME Group, which raised concerns regarding the future direction of monetary policy under the anticipated leadership of Kevin Warsh at the Federal Reserve.
The possibility of a quarter-point interest rate hike by the RBA, fueled by unexpectedly high inflation rates in December, has left investors wary. Polls suggest that the RBA is inclined to tighten monetary policy, influencing the market sentiment on various asset classes including gold.
Top Gainers and Losers in the Market
In terms of individual stock performance within the S&P/ASX 200, Nine Entertainment Co. Holdings Limited stood out as a top gainer. Its shares rose by 6.55%, closing at $1.220. Other companies such as DroneShield Limited and Whitehaven Coal Limited reported notable gains of 3.915% and 3.284% respectively, signaling pockets of resilience in an otherwise waning market.
However, losses were pronounced among mining and resource stocks. GrainCorp Limited led the decline with a dramatic fall of 14.03%. Newmont Corporation and Emerald Resources NL also suffered significant setbacks, showing declines of 9.996% and 9.262% respectively. Ora Banda Mining Ltd and Bellevue Gold Limited contributed to the negative trend, indicating a widespread struggle among resource-related equities.
Sector Analysis
The overall sector performance was mixed, aligned with the overall decline of the S&P/ASX 200 index. Out of the 11 sectors, eight witnessed losses. The Telecommunications Services sector emerged as the best-performing sector, marking a gain of 0.50%, adding to its 0.69% growth over five days.
Conversely, healthcare and energy sectors experienced downward trends, with declines of around 2%. Real estate shares also inched lower by approximately 0.4%, while financial stocks managed to close slightly higher despite the overall bearish sentiment.
Conclusion
In summary, the recent decline in the Australian sharemarket is a reflection of investor caution amidst looming interest rate hikes and the challenges faced by mining and resource sectors, particularly gold and precious metals. The market’s shift emphasizes the interconnectedness of monetary policy and investment decisions, shaping the trajectory of stock performances across various sectors. As the week continues, market participants are likely to closely monitor economic indicators and Reserve Bank announcements that could further influence trading activity and investment strategies.
