Australian Shares Snap 3-Session Decline

The S&P/ASX 200 climbed 1.2% to 8,464 on Tuesday, snapping a three-session losing streak and rebounding from a ten-month low reached in the prior session, as market sentiment improved on easing geopolitical concerns. US President announced a five-day postponement of planned military strikes targeting Iranian power plants and energy infrastructure. The decision came amid claims that Washington and Tehran were engaged in discussions aimed at a “complete and total resolution of hostilities” in the Middle East. Domestically, the manufacturing PMI slipped to a five-month low of 50.1 in March 2026, while the services PMI fell into contraction territory for the first time since January 2024, dropping to 46.6. All eyes are on Wednesday’s inflation report, with both trimmed mean CPI seen steady at 3.4% and headline inflation at 3.8%. Heavyweight mining stocks led broad-based gains, with BHP Group, Rio Tinto, and Fortescue climbing between 2.7% to 3.2%.

The S&P/ASX 200 fell 0.7% to close at 8,366 on Monday, hitting its lowest level since May 2025, as intensifying geopolitical tensions continued to rattle market sentiment. Tensions in the Middle East persisted after US President Trump threatened to strike Iranian power facilities if the Strait of Hormuz remains closed, while Tehran responded with warnings that it would target key US and Israeli assets. Domestically, investors are awaiting Wednesday’s inflation report, with headline inflation expected to hold steady at 3.8%. The data follows the RBA’s narrowly split decision to raise the cash rate to 4.1%. It marked a second straight hike for the first time since mid-2023 and reversing two of last year’s three cuts, as the central bank seeks to curb persistent inflation. Mining stocks led the losses, particularly BHP Group (-1.1%) and Rio Tinto (-1.5%). Gold producers also underperformed, led by Newmont Corporation (-7.4%), Evolution Mining (-6.9%), and Northern Star Resources (-6.3%).

The S&P/ASX 200 fell 0.8% to close at 8,428 on Friday, marking a fresh four-month low and a 2.2% weekly decline, its third straight loss as weakness in banks and miners weighed on the market. The heavyweight mining sector slid 1.5%, as iron ore, aluminium, and copper prices tumbled. Shares of mining giants BHP Group and Rio Tinto fell 1.8% and 2.9%, respectively. Gold stocks also came under heavy pressure as bullion extended its losing streak amid inflation concerns tied to the Middle East conflict, leaving the sector down 11.5% for the week. Additionally, banking stocks ended 1.1% lower, with the four top lenders trading in the red. Bucking the trend, energy stocks rose 0.7% to their highest level since February 2024, tracking gains in oil prices after Iran launched attacks on Middle Eastern energy infrastructure. Meanwhile, European nations and Japan signaled support for securing shipping through the Strait of Hormuz, while the US outlined measures to boost oil supply.