ASX 200 Falls for Third Day, Closes at Two-Week Low

The S&P/ASX 200 lost 50 points, or 0.6%, to finish at 8,793 on Thursday, marking a third straight decline and its lowest level in two weeks, as traders shunned risk amid a sharp retreat in U.S. futures and escalating geopolitical tensions. U.S. Vice President JD Vance reportedly paused plans to join peace talks after reports of Tehran’s lack of commitment, while Iran said it had seized two container ships in the Strait of Hormuz. Concerns also mounted that the Reserve Bank of Australia would keep raising cash rates, with inflation already above target before hostilities in the Middle East erupted. Some economists see headline inflation hitting 5.0% in Q2, double the RBA’s goal, after two hikes this year. Most sectors slipped, led by process industries, non-energy minerals, and financials. The four big banks lost 0.2%–1.0%, while other major decliners included Lynas Rare Earths (-6.7%), PLS Group (-4.0%), Wisetech Global (-3.1%), and Evolution Mining (-1.2%).

Australian shares slipped 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%).