Stocks in Australia on Track for Back-to-Back Weekly Losses

Australian shares fell 37 points, or 0.4%, to 8,756 in Friday morning trade, marking a fourth straight decline and tracking Wall Street’s Thursday losses as hopes for a swift resolution to the Middle East war faded. Tehran vowed to keep the Strait of Hormuz closed as long as U.S. port blockades remain, intensifying geopolitical strain. For the week, the local market is down around 2% so far, set for a second consecutive weekly loss. Inflation pressures, already above the Reserve Bank’s target before hostilities in Iran erupted, have reinforced expectations of further rate hikes at the May meeting, with March inflation data due next week in focus. Sector losses were broad, led by commercial services, financials, and non-energy minerals. Fortescue slipped 2.9% after saying guidance for FY 2026 total mining shipments remained unchanged. Other notable decliners included Northern Star Resources (-2.3%), Qantas Airways (-1.9%), Sigma Healthcare (-1.1%), and BHP Group (-0.5%).

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%.