Australia shares fall as Santos tanks; jobs data fuels November rate cut bets

Published on 09/18/2025 at 02:56 am EDT
(Updates to close)
* Santos down 12% after ADNOC drops $18.7 billion bid
* RBA rate cut expected in November
* Fed lowers interest rates by 25 bps
(Reuters) - Australian shares declined on Thursday, led by a sharp fall in Santos after a $18.7 billion purchase bid for the gas producer was withdrawn while a soft labour market report raised bets for another interest rate cut later this year.
The S&P/ASX 200 benchmark index closed 0.8% lower at a two-week low of 8,745.20 points. The benchmark had closed 0.7% lower on Wednesday.
Shares of Santos fell 12.4%, slipping to its weakest level in more than three months after the deal from a consortium led by Abu Dhabi National Oil Company (ADNOC) collapsed. Analysts with brokerage Jarden Group expect investors to take advantage of any material sell-offs.
The broader energy sector dropped nearly 6%, with Woodside Group sliding 6.3% in tandem.
Meanwhile, a surprise drop in August employment figures signalled labour market weakness, strengthening the case for an interest rate cut by the Reserve Bank of Australia (RBA) later this year.
Lower interest rates typically spur consumer spending and borrowing, as well as capital spending to feed that demand, in turn boosting corporate earnings and the economy.
Most analysts expect the RBA to hold rates steady at its September meeting, with a potential cut priced in for November. The release of the third-quarter inflation print, due in October, will inform central bank's stance.
The RBA has indicated they are not in a rush, they will wait for the quarterly numbers because they believe the monthly data isn't accurate enough, said Steven Dooley, head of market insights at Convera, a fintech firm.
Overnight, the U.S. Federal Reserve delivered an expected quarter-basis point reduction in borrowing costs.
Elsewhere, miners fell 0.4% on weaker commodity prices with BHP, Rio Tinto and Fortescue losing between 0.7% and 0.8%.
Financials slipped 0.9%. Three of the "Big Four" banks ended lower.
New Zealand's benchmark S&P/NZX 50 index fell 0.8% to 13,120.03.
 (Reporting by Sneha Kumar in Bengaluru; Editing by Janane Venkatraman) 

Sumber : Reuters