Australia Stocks Dip for Third Session

Australian shares dropped 50 points, or 0.6%, to 8,793 in early Thursday trade, retreating for a third session and hovering at a two-week low. Sentiment was pressured by a sharp drop in U.S. equity futures following renewed Middle East uncertainty, as Iranian officials reportedly refused to reopen the Strait of Hormuz after President Trump’s ceasefire extension. Locally, households and businesses continue to grapple with high mortgage rates, soaring energy costs, and price strains from geopolitical conflicts. With the Reserve Bank set to hold a policy meeting in early May, expectations are rising for another cash rate hike. Still, losses were partly offset by April PMI data showing signs of recovery in both manufacturing and services in Australia. Process industries, consumer non-durables, and financials led the decline, with major laggards from Lynas Rare Earths (-5.1%), Aristocrat Leisure (-2.2%), and Medibank Private (-3.5%). The four big banks dropped between 0.2% and 1.3%.

The S&P/ASX 200 fell 106 points, or 1.2%, to end at 8,844, marking a two-week low after days of weak momentum. A sharp rise in U.S. futures failed to lift sentiment, with traders largely dismissing President Trump’s pledge to extend the Iran ceasefire indefinitely. Concerns over Australia's inflation mounted as high rates and surging fuel costs tied to the Middle East conflict weighed on growth prospects. Westpac forecasts the RBA will raise the cash rate by another 25bps in May, with further hikes likely. Losses were led by healthcare, financials, commercial services, and logistics, though gains in consumer non-durables, utilities, and industrial services capped declines. Cochlear plunged near 41%, its worst day since listing in 1995, after slashing profit guidance on weak U.S. demand and geopolitical risks. Four big banks dropped between 2.0–2.5%, while other major laggards included CSL Ltd.(-5.7%), Evolution Mining (-2.9%), Qantas Airways (-2.3%), and Lynas Rare Earths Ltd. (-1.3%).

Australian shares fell 84 points, or 0.9%, to 8,865 in Wednesday morning trade, extending a run of weak sessions and approaching a two-week low after Wall Street’s overnight slide following skepticism over U.S. President Trump’s announcement of an indefinite ceasefire extension with Iran. Comments from Fed nominee Kevin Warsh at his Senate confirmation hearing Tuesday were read as slightly hawkish, adding to market caution. Locally, April PMI data will be due Thursday. Meanwhile, Australia’s leading index stayed weak in March, weighed by higher rates and surging fuel costs tied to the Middle East conflict. Sector losses were led by healthcare, financials, and commercial services, though gains in consumer non-durables helped cap declines. Among notable laggards were Macquarie Group (-3.9%), Evolution Mining (-3.5%), and Ramsay Health Care (-1.8%). Cochlear Ltd. tumbled 37.2%, hitting a ten-year low after cutting its full-year earnings guidance, on weak demand and geopolitical risks.