ASX 200 Falls for First Time in Four Weeks

The S&P/ASX 200 edged down 0.1% to close at 8,947 on Friday, extending losses from the prior session as healthcare, logistics, and retail weighed. The index posted its first weekly decline in four, down about 0.2%, with cost concerns lingering after April inflation expectations in Australia hit a three-year high. Meantime, the International Monetary Fund urged the Albanese government to avoid broad cost-of-living relief that could stoke inflation, while RBA Deputy Governor Andrew Hauser warned of a sharp income shock from oil price spikes tied to the Iran war. Still, losses were capped by reassurance that fuel supplies in Australia remain secure despite a blaze at Viva Energy’s refineries, though Energy Minister Chris Bowen noted the fire came at a difficult time given Middle-East conflict-related pressures. Major laggards included Whitehaven Coal (-5%), Ramelius Resources (-3.4%), Reece (-3.2%), and Yancoal Australia (-2.8%), while the big four banks mostly ended in the red.

Australian shares slipped 37 points, or 0.4%, to 8,918 in early Friday trade, extending losses for a second session and heading toward the first weekly decline in four, down 0.5% so far. Sentiment continued to weaken on soft domestic data: April inflation expectations surged to a three-year high while employment in March grew the least in four months. Externally, risks of slower growth in top trading partner China amid Middle East tensions weighed, despite stronger-than-expected Q1 expansion. Still, losses were capped by firmer U.S. futures after President Donald Trump signaled the Iran war may end soon, with Israel and Lebanon agreeing to a 10-day ceasefire. Meanwhile, PM Anthony Albanese said a blaze at Viva Energy's oil refineries would not trigger any fuel restrictions in Australia. Retail, logistics, and financials led declines, with notable laggards from Cochlear (-2.2%), Ramelius Resources (-2.1%), and Perseus Mining (-1.6%). The big four banks fell between 0.3% and 1.1%.

The S&P/ASX 200 slipped 24 points, or 0.3%, to close at 8,955 on Thursday, reversing morning gains and a two-day advance as weakness in process industries, non-energy minerals, logistics, and financials weighed. Sentiment soured after April data showed inflation expectations in Australia jumped to their highest since November 2022, stoking cost-pressure concerns. Employment growth also slowed to a four-month low in March, driven by a drop in part-time jobs. Traders remained cautious after China’s Q1 2026 GDP beat forecasts, but face risks of softer growth if the Middle East crisis drags on. In the U.S., President Trump said the war with Iran was “close to over,” though Washington’s port blockade keeps supply-disruption risks elevated. Australia’s “big four” banks fell 1.3%–2.8%, while notable laggards included Reece Ltd. (-5.3%), Viva Energy (-4.5%), Evolution Mining (-4.2%), and Greatland Resources (-4.0%).