Australian Shares Dip to 3-Week Low, Yet April Gain in Sight

Australian shares slipped 46 points, or 0.5%, to 8,641 in Thursday’s morning session, marking an eighth straight decline and a three-week low. Sentiment stayed weak as cost pressures persisted, with March consumer inflation accelerating to 4.6% from the prior 3.7%, reinforcing expectations of further cash rate hikes at next week’s central bank meeting. In the U.S., a divided Federal Reserve held rates steady on Wednesday as policymakers weighed persistent inflation and an impending leadership transition. Middle East tensions also deepened after President Trump directed aides to prepare for an extended blockade of Iran, driving oil prices higher. Major laggards included Woolworths Group (-6.9%), Coles Group (-4.5%), Northern Star Resources (-3.3%), and BHP Group (-1.6%). Despite the slide, the ASX 200 is on track to gain in April, up nearly 2% so far, supported by bargain hunting after a near 8% tumble in March.

ASX200 decreased to 8605.00 Index Points, the lowest since April 2026. Over the past 4 weeks, Australia Stock Market Index (AU200) gained 1.72%, and in the last 12 months, it increased 5.91%.

The S&P/ASX 200 lost 24 points or 0.3% to finish at 8,687 on Wednesday, logging its seventh straight decline and marking a three-week low. Sentiment stayed weak after fresh data showed Australia’s annual inflation accelerated to 4.6% in March from 3.7%, remaining above the RBA’s 2–3% target, though slightly below forecasts of 4.7%. The figures underscored persistent cost pressures that have grown since mid-2025. Meanwhile, the Reserve Bank will meet next week after raising borrowing costs in February and March. Still, losses were partly offset by stronger U.S. stock futures ahead of the Fed’s policy decision later today, before Jerome Powell hands leadership to Kevin Warsh in May. Sector weakness was led by non-energy minerals, consumer non-durables, healthcare, and logistics, with gains in consumer durables and energy minerals helping limit declines. Major laggards included Westgold Resources (-3.3%) and CSL Ltd. (-2.4%), while three of the four largest banks fell between 1% to 1.4%.