Australia Markets Retreat 7.8% in March, First Drop in Four Months

2026-03-31 05:16 By Farida Husna 1 min. read

The S&P/ASX 200 rose 21 points, or 0.3%, to close at 8,482 on Tuesday, ending a three-session slide as U.S.

futures rallied on reports that President Trump may end Middle East hostilities despite continued disruption in the Strait of Hormuz.

Sentiment was further lifted by PMI data in top trading partner China, showing the manufacturing sector posted its strongest gain in a year during March.

Commercial services, consumer non-durables, and non-energy minerals drove the gains, though declines in logistics and energy minerals capped upside.

The four major banks gained between 0.7% and 1.6%.

Top movers included Xero (6.9%), REA Group (4.4%), and Northern Star Resources (4.1%).

For March, however, markets slid 7.8%, its first drop in four months and the weakest since January 2022, pressured by inflation concerns tied to the widening Middle East conflict.

Meantime, RBA minutes showed members expect further tightening, predicting that inflation could reach 5% in Q2 if oil stays near USD 100.



News Stream
Australia Markets Retreat 7.8% in March, First Drop in Four Months
The S&P/ASX 200 rose 21 points, or 0.3%, to close at 8,482 on Tuesday, ending a three-session slide as U.S. futures rallied on reports that President Trump may end Middle East hostilities despite continued disruption in the Strait of Hormuz. Sentiment was further lifted by PMI data in top trading partner China, showing the manufacturing sector posted its strongest gain in a year during March. Commercial services, consumer non-durables, and non-energy minerals drove the gains, though declines in logistics and energy minerals capped upside. The four major banks gained between 0.7% and 1.6%. Top movers included Xero (6.9%), REA Group (4.4%), and Northern Star Resources (4.1%). For March, however, markets slid 7.8%, its first drop in four months and the weakest since January 2022, pressured by inflation concerns tied to the widening Middle East conflict. Meantime, RBA minutes showed members expect further tightening, predicting that inflation could reach 5% in Q2 if oil stays near USD 100.
2026-03-31
Australia Stocks Rebound But Head for Weakest Month Since 2022
Australian stocks rose 73 points, or 0.9%, to 8,534 in afternoon trade on Tuesday, snapping a three-session losing streak as U.S. futures advanced after Wall Street closed mostly lower Monday in a holiday-shortened week. Sentiment was lifted by domestic data showing resilient February private credit growth, broadly in line with estimates. Top gainers included Xero (5.1%), Northern Star Resources (3.0%), REA Group (2.5%), and CSL (2.0%). However, the market is on track for its first monthly decline in four, down about 7% so far and set for its weakest month since January 2022, amid inflation concerns tied to the widening Middle East conflict. Meanwhile, minutes from the Reserve Bank’s March meeting showed members agreed further tightening would likely be needed, though timing remained uncertain. Policymakers also warned that if oil prices hold near USD 100 a barrel, headline inflation could climb to around 5% in Q2 2026.
2026-03-31
Weakness in ASX 200 Persists for 3rd Session
The S&P/ASX 200 was down 60 points, or 0.7%, to close at 8,456 on Monday, marking a third straight decline amid broad-based losses, led by logistics, producer manufacturing, financials, and healthcare. Sentiment remained downbeat on growing fears that Australia’s economic outlook has shifted materially amid renewed Middle East conflict, with higher energy prices expected to fuel inflation, slow growth, and lift unemployment. Adding pressure, LNG production stayed offline, and thousands were still without power in the northwest part of Australia, over a week after severe storms, Reuters reported. In the U.S., rate expectations flipped, with markets now pricing 12bps of Fed tightening this year versus 50bps of cuts a month ago. Four major banks slipped between 1.7% to 3.8%. Meanwhile, Wisetech Global (-4.9%), Pro Medicus (-2.7%), and Qantas (-1.9%) led other decliners. Traders now await upcoming releases, including RBA minutes, U.S. NFP data, and global PMIs, all due later this week.
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