ASX 200 Ends 0.4% Lower
2026-05-12 06:43
By
Farida Husna
1 min. read
Australia’s S&P/ASX 200 slipped 31 points, or 0.4%, to close at 8,671 on Tuesday, extending losses for a third session as fading hopes for a U.S.–Iran peace deal and weaker U.S.
futures weighed on sentiment.
President Donald Trump warned the ceasefire was “on life support” after rejecting Tehran’s counterproposal, stoking fears of prolonged Middle East tensions.
Locally, investor confidence was dampened by the April business confidence report, which remained deeply negative despite a slight rise from March’s historic drop.
Still, losses were partly cushioned by anticipation of the 2026/27 Federal Budget, expected to outline reforms, cost-of-living relief, and tax changes such as potential adjustments to negative gearing, alongside narrower deficit projections.
Most sectors finished lower, led by commercial services, consumer stocks, financials, and healthcare.
The big four banks fell 1.4%–2.4%, while Xero (-3.5%), REA Group (-2.7%), and Coles (-2.6%) were among notable laggards.