Aussie Stocks Retreat to 5-Month Lows

The S&P/ASX 200 lost 24 points or 0.3% to finish at 8,687 on Wednesday, logging its seventh straight decline and marking a three-week low. Sentiment stayed weak after fresh data showed Australia’s annual inflation accelerated to 4.6% in March from 3.7%, remaining above the RBA’s 2–3% target, though slightly below forecasts of 4.7%. The figures underscored persistent cost pressures that have grown since mid-2025. Meanwhile, the Reserve Bank will meet next week after raising borrowing costs in February and March. Still, losses were partly offset by stronger U.S. stock futures ahead of the Fed’s policy decision later today, before Jerome Powell hands leadership to Kevin Warsh in May. Sector weakness was led by non-energy minerals, consumer non-durables, healthcare, and logistics, with gains in consumer durables and energy minerals helping limit declines. Major laggards included Westgold Resources (-3.3%) and CSL Ltd. (-2.4%), while three of the four largest banks fell between 1% to 1.4%.

Australian equities fell 45 points, or 0.5%, to 8,666 in early Wednesday trade, marking a seventh straight session of losses and the lowest in three weeks. A weak lead from Wall Street Tuesday pressured risk appetite, as traders turned cautious ahead of the U.S. Fed’s rate decision later in the day. Locally, attention centered on Australia’s March CPI report, due today, with markets expecting inflation to hit around 4.7%, potentially the highest since the monthly series began in April 2025, amid persistent cost pressures that have built since mid-2025. Meantime, the Reserve Bank is set to hold its policy meeting next week, with bets on further rate hikes growing. Non-energy minerals, commercial services, and healthcare dragged the ASX 200, but gains in consumer durables and energy minerals helped cushion the downside. Among notable decliners were BHP Group (-2.3%), Cochlear Ltd. (-1.9%), and Westgold Resources (-1.5%). Shares of the largest four banks slipped between 0.2% to 1.2%.

The S&P/ASX 200 fell 56 points, or 0.6%, to close at 8,711 on Tuesday, marking a sixth consecutive session of losses and its lowest in near three weeks. Sentiment remained cautious ahead of Australia’s March CPI report due Wednesday, with markets expecting inflation around 4.7%, potentially the highest since the monthly series began in April 2025, on persistent cost pressures that have built since mid-2025. Investors also stayed on the sidelines before the Reserve Bank’s policy review next week. Globally, U.S. stock futures were mixed as the Fed kicks off its two-day meeting later today, while uncertainty over the Middle East conflict added another layer of caution, with traders assessing its potential impact on interest rate outlook. Losses were broad-based, led by non-energy minerals, consumer services, and retail. Aristocrat Leisure dipped 4.2%, followed by Origin Energy (-4.1%), Evolution Mining (-3.1%), and Genesis Minerals (-2.5%). Two of the four major banks also ended lower.