Closing Bell 30th October: Banking and Energy Sectors Stumble as ASX Navigates Conflict Shadows

Surprise Jump in September Retail Sales Puts Pressure on RBA
Australian retail sales in September exceeded expectations, rising by 0.9%, a result that could bolster the Reserve Bank of Australia’s (RBA) confidence in the economy’s resilience against further interest rate hikes. The unexpected retail boost, driven by department stores and household goods, contrasts with the prevailing downbeat consumer sentiment, making a stronger case for the RBA to consider raising interest rates to 4.35% in its upcoming November 7 meeting.

ASX Gold Miners Rally as Safe Havens Sought
ASX gold miners experienced a rally as the conflict in Gaza intensified, driving investors towards the safety of gold holdings. Gold prices hovered near $US2000 an ounce, marking gold as one of the significant beneficiaries since the onset of the Hamas-Israel conflict, with a rise of over 9%. The ongoing conflict and upcoming central bank decisions globally will likely continue to influence gold’s performance in the market.

Oil Dips as Israeli Offensive Starts Cautiously
Oil prices have declined despite the escalation in Gaza, as a more cautious approach by Israel eased market concerns of a broader conflict that could disrupt the global oil supply. The cautious approach has led to a decrease in Brent and West Texas Intermediate prices, reflecting the market’s response to the unfolding geopolitical events and their potential impact on oil supplies from a region that accounts for a significant portion of global oil production.