ASX 200 Pares Losses at Finish

The S&P/ASX 200 inched down 20 points, or 0.2%, to close at 8,766 on Monday, marking a fifth straight decline and hovering near a two-week low. Sentiment was weighed by weaker U.S. futures and caution over renewed tensions in the Strait of Hormuz, which lifted oil prices. Focus also turns to the U.S. Federal Reserve's interest rate decision on Wednesday, which would mark Jerome Powell’s final meeting before Kevin Warsh is expected to assume the chair in May. Locally, March inflation data in Australia due later this week has stoked concern over persistent price pressures after February’s reading exceeded the RBA’s 2–3% target. Still, early losses eased after data from top trading partner China showed robust growth in industrial profits for March and Q1. Energy minerals led declines, followed by communications, logistics, and industrial services. Major laggards included Origin Energy (-5.0%), Wisetech Global (-3.2%), Endeavor Group (-2.6%), and Ampol (-1.1%).

Australian equities dropped 52 points or 0.6% to 8,734 in early deals on Monday, extending losses for the fifth straight session and lingering at a two-week low amid a retreat in U.S. stock futures following renewed diplomatic setbacks between Washington and Tehran. U.S. President Donald Trump on Saturday scrapped plans to send U.S. envoys to Islamabad, Pakistan, for negotiations with Iran, despite Iran's foreign minister pressing ahead with visits to intermediary nations. Traders stayed cautious ahead of March inflation data due later this week. In February, Australia's CPI stood at 3.7% yoy, still above the RBA’s 2–3% target, underscoring persistent price pressures since H2 2025. Sector weakness was broad, led by energy minerals, logistics, and healthcare, though gains in non-energy minerals helped cap declines. Among major laggards were Lynas Rare Earths Ltd. (-2.9%), Mineral Resources (-2.3%), and Yancoal Australia (-1.1%). The four big banks slipped between 0.7% to 1.1%.

The S&P/ASX 200 edged lower on Friday, closing at 8,786 and marking a fourth straight session of losses. Sentiment was weighed down by weaker U.S. stock futures, as uncertainty over the reopening of the Strait of Hormuz and stalled U.S.–Iran peace talks dampened risk appetite. Momentum in Australian stocks remained fragile, with the benchmark index down 1.8% for the week, marking the steepest weekly decline since mid-March. Renewed inflation pressures, reemerging since H2 of 2025 and already above the Reserve Bank of Australia target, continued to rattle equity markets. This reinforced views that the central bank could deliver another rate hike at its May meeting, with March inflation data, due next week, likely to be pivotal. Commercial services, logistics, and consumer durables drove the weakness, with notable decliners including Fortescue (-5.7%), Northern Star Resources (-3.5%), Pro Medicus (-2.3%), and SGH Ltd (-2.2%). Meanwhile, the four major banks delivered a mixed performance.