The Australian sharemarket snapped its longest winning streak since August on Monday, as investors took some money off the table before the Reserve Bank of Australia’s interest rate decision.

The S&P/ASX 200 slipped 0.6 per cent, or by 48.5 points, to 8295.1 points at the close after climbing for eight consecutive sessions. Nine of the gauge’s 11 sectors fell, led by materials and energy stocks. The All Ordinaries also slid 0.6 per cent.

Profit-taking hit the bourse at the start of the week before the RBA board meeting on Tuesday. With the central bank widely expected to cut interest rates for a second time this year to 3.85 per cent, investors will be focused on the RBA’s post-meeting statement for any clues about future policy.

Strategists have warned interest-rate-sensitive shares, such as banks and real estate stocks, could be dealt a blow if the central bank strikes a hawkish tone.

‘Getting the market moving’

UBS executive director for global markets Rob Taubman said traders were paring risk assets ahead of the RBA decision given the lack of other obvious catalysts for the equity market.

“The absolute valuation level for the Australian market is pushing very high barriers – it’s near a record,” he said. “Normally, that would happen when you have momentum of earnings coming through, but Australia hasn’t had that, so we need to see that interest rate adjustment to get the market moving again.”

Market sentiment was also dented after credit ratings agency Moody’s downgraded America one notch to Aa1 – citing its ballooning fiscal deficit and increased interest costs. That drove the yield on 10-year Treasuries up another four basis points, while the gold price climbed.

Interest-rate-sensitive bank and real estate stocks compounded losses, with Goodman Group falling 0.6 per cent to $31.62 and GPT Group off 2.3 per cent to $4.68. Banks were a sea of red though Commonwealth Bank was an exception, closing up 1 per cent to $171.63.

A dramatic fall in China’s industrial output and retail sales also weighed. Energy and mining stocks compounded losses on concerns a decline in Chinese consumption could flow through to Australian commodities. Iron ore giant BHP dropped 2.4 per cent to $38.75 while diversified miner Mineral Resources dropped 8.9 per cent to $24.08 after announcing a successor to outgoing chairman James McClements.

Stocks in focus

Profits were recycled into typically defensive utilities stocks and gold miners, buoyed by the higher bullion price. Gold miner Capricorn Metals was the best performer on the ASX 200, rising 3.4 per cent to $8.71, while Evolution Mining rose 3.2 per cent to $8.12.

In corporate news, New Hope tumbled 7.1 per cent to $3.65 after downgrading its guidance for coal output and sales. Fellow coal miner Whitehaven closed down 3.4 per cent at $5.37.

Domino’s Pizza lost 2.6 per cent, closing at $24.55, after announcing the chief of its Australia and New Zealand business, Kerri Hayman, would step down in August.

Hearts and Minds Investments slipped 1.3 per cent to $3.06 after it announced chief executive Brett Jollie was stepping down after less than a year with the business.

And All Ordinaries listed Electro Optic Systems surged 14.7 per cent to $1.48 after announcing a new government-funded order worth about $53 million for its counter-drone remote weapons system to address “urgent operational requirements” in Europe.