Australian shares dipped on Monday as investors braced for US President Donald Trump’s imminent tariff deadline and the Reserve Bank’s interest rate decision on Tuesday.

The S&P/ASX 200 swung between gains and losses throughout Monday’s session, but closed down 13.7 points, or 0.2 per cent, at 8589.3. Six out of the 11 sharemarket sectors fell. The broader All Ordinaries index fell a similar amount to 8826.4.

Traders were cautious after US Treasury Secretary Scott Bessent said the White House would send tariff letters to as many as 15 trade partners on Monday (Tuesday AEST). The revised levies will kick in on August 1.

US stock futures fell on the news, with the S&P 500 set for a 0.5 per cent drop.

Local investors are preparing for the RBA’s hotly anticipated policy decision on Tuesday, when the central bank is widely expected to deliver its first back-to-back interest rate cut since the COVID-19 pandemic.

“Tailwinds from offshore will remain relatively favourable while at the same time domestic drivers will gradually strengthen as the RBA eases policy settings,” Ten Cap chief executive Jason Todd said. “Historically, a policy rate-cutting cycle outside of an economic recession is very bullish equity markets.”

Brent slid as much as 1.6 per cent towards $US67 a barrel after the Organisation of the Petroleum Exporting Countries agreed to a bigger-than-expected production increase next month. Woodside Energy fell 0.8 per cent to $23.87.

Copper and aluminium fell after Trump pledged to impose a 10 per cent tariff on any country aligned with the BRICS block of nations, which includes Brazil, China, South Africa and India.

Gold dropped as much as 0.9 per cent to $US3306 an ounce following the US president’s threat. Miner Northern Star Resources tumbled 8.7 per cent to $16.80 after it told investors to expect higher costs and lower production in FY26.

Iron ore futures in Singapore eased 0.5 per cent to $US95.35 a tonne, weighting on the local materials sector which dropped 0.9 per cent. Index heavyweight BHP dropped 0.3 per cent to $38.60, Rio Tinto eased 0.2 per cent to $108.62, while Fortescue was flat at $16.34.

The big four banks all posted modest losses. Commonwealth Bank extended its decline, edging 0.1 per cent lower to $177.81.

Stocks in focus

In corporate news, Origin Energy jumped 6.8 per cent to $11.55 on reports that UK start-up Octopus Energy, of which it has a 23 per cent stake, is planning to demerge its technology arm, Kraken.

Mineral Resources rose in early trading but closed down 2 per cent to $24.46 following the appointment of Lawrie Tremaine and Ross Carroll as independent non-executive directors.

HUB24 climbed 2.8 per cent to $94.30 after UBS upgraded the stock to “buy”, with a short-term share price target of $105.

Medical device maker Nanosonics added 1.6 per cent to $3.91 following the announcement of an upgrade of its ultrasound probe sterilising device Trophon in the United Kingdom and Europe.

And Cobram Estate Olives rose 13.5 per cent to a record close of $2.44 after the olive grower reported a successful 2025 harvest.

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