Australia Shares Fall for Third Session to Open Week

Australian stocks slipped 32 points or 0.4% to 8,917 on Monday morning trade, down for the third straight session amid a sharp drop in U.S. equity futures following renewed tensions between Washington and Tehran. President Trump said Sunday that a U.S. Navy destroyer disabled and seized an Iranian cargo ship in the Gulf of Oman, escalating friction as Iran denounced the ongoing U.S. naval blockade as a breach of the ceasefire. Traders also turned cautious ahead of the monthly lending rate fix in top trading partner China later today, and Australia’s PMI data in the coming days. At the same time, concerns about Australia's inflation persisted. Energy minerals, non-energy minerals, healthcare, and consumer non-durables led the weakness, though gains in process industries and retail trade helped cap declines. The big four banks fell between 0.5% and 3.1%. Other major laggards were PLS Group (-5.1%), Lynas Rare Earths Ltd. (-2.5%), Woodside Energy (-1.9%), and BHP Group (-1.0%).

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%.