Australian shares declined over 1% by midday Tuesday, led by miners, as investors anticipated the U.S. Federal Reserve would resist immediate rate cuts in its upcoming policy meeting. European uncertainties, including significant far-right gains in eurozone elections and French President Emmanuel Macron’s snap parliamentary election call, also weighed on sentiment.

The S&P/ASX 200 dropped 1.3%, or 99.8 points, to 7760.2, reversing some of last week’s 2% gain fueled by central bank optimism. The All Ordinaries similarly fell 1.3%. All 11 sectors declined, with materials and utilities leading the sell-off. Major miners BHP, Rio Tinto, and Fortescue retreated, despite Monday’s iron ore price rebound in Asia.

Gold miners faced pressure after gold prices dipped below $2300 an ounce. West African Resources plunged over 9%, while Ramelius, St Barbara, and Bellevue Gold fell more than 7%.

Bond yields rose, with three-year yields up 9 basis points to 3.99% and ten-year yields adding 10 basis points to 4.34%. ANZ postponed its rate cut forecast to February 2025. Bapcor surged nearly 14% after an unsolicited buyout offer from Bain Capital.