Aussie Stocks Kick Off the Week Lower

Australia’s S&P/ASX 200 slipped 31 points, or 0.4%, to close at 8,671 on Tuesday, extending losses for a third session as fading hopes for a U.S.–Iran peace deal and weaker U.S. futures weighed on sentiment. President Donald Trump warned the ceasefire was “on life support” after rejecting Tehran’s counterproposal, stoking fears of prolonged Middle East tensions. Locally, investor confidence was dampened by the April business confidence report, which remained deeply negative despite a slight rise from March’s historic drop. Still, losses were partly cushioned by anticipation of the 2026/27 Federal Budget, expected to outline reforms, cost-of-living relief, and tax changes such as potential adjustments to negative gearing, alongside narrower deficit projections. Most sectors finished lower, led by commercial services, consumer stocks, financials, and healthcare. The big four banks fell 1.4%–2.4%, while Xero (-3.5%), REA Group (-2.7%), and Coles (-2.6%) were among notable laggards.

Australian shares lost 28 points or 0.3% to 8,674 in early Tuesday trade, marking a third straight retreat as weaker U.S. futures weighed on sentiment. Pressure weighed after President Donald Trump warned the ceasefire with Iran was “on life support,” rejecting Tehran’s counterproposal to end the war and signaling the conflict could drag on. Traders continued to adopt a cautious stance ahead of the release of Australia’s 2026 federal budget later today, as Treasurer Jim Chalmers warned global conflicts and persistent inflation were keeping the economy “hostage.” Market participants also braced for May consumer confidence data and April business sentiment, adding to caution across risk assets. Most sectors moved lower, with major laggards including commercial services, financials, logistics, and consumers. The big four banks slid between 1.6% to 2.5%. Other notable decliners were CSL Ltd. (-3.4%), Brambles Ltd. (-2.5%), and Woolworths Group (-2.2%).

The S&P/ASX 200 dropped 45 points, or 0.5%, to close at 8,699 on Monday, extending losses from the prior session amid weaker U.S. futures after President Donald Trump turned down Tehran’s counteroffer for peace talks. Traders also turned cautious ahead of Australia’s 2026 federal budget due Tuesday, as Treasurer Jim Chalmers warned global conflicts and persistent inflation were keeping the economy “hostage.” In China, Australia’s main trading partner, April consumer inflation accelerated, driven partly by higher transport costs linked to supply disruptions. Still, early weakness was capped by optimism that President Trump’s upcoming meeting with Chinese leader Xi later this week could ease global tensions. Healthcare, financials, and consumer stocks led the fall, with notable movers from Greatland Resources (-2.4%), JB Hi-Fi (-2.2%), and Qantas (-2.0%). CSL Ltd. plunged 15.5% after warning of an additional impairment charge for FY2026–27 and cutting its earnings outlook for 2026.