ASX 200 Bounces as RBA Hike Odds Rise Above 80%

The Australian stock market experienced a slight rebound on Monday after four consecutive days of decline. The S&P/ASX 200 rose by 0.1%, breaking its losing streak that had seen it fall almost 3% last week.

However, investors remained cautious due to rising oil prices, higher bond yields, and the increased likelihood of a Reserve Bank of Australia (RBA) rate hike later this month. According to Reuters, markets now price in an over 80% chance of an RBA hike, up from 76% on Friday.

This shift has led to a sector split, with banks and energy stocks rising by around 0.4%, while miners declined due to softer iron ore prices and tech stocks falling by 1.4%. The higher yields tend to hurt companies whose profits are expected further in the future.