ASX 200 Slips for Fourth Session, Down 0.5% at Close

The S&P/ASX 200 lost 40 points or 0.5% to finish at 8,631 on Wednesday, pulling back for the fourth straight session amid broad losses on Wall Street Tuesday following hotter-than-expected inflation readings for April due to higher oil prices from the Middle East conflict. On the fiscal front, the 2026/27 federal budget offers modest cost-of-living relief and sweeping tax reforms, but expect Australia's economic growth to ease to 1.75% and inflation to hit 5% by mid-2026. Meantime, the deficit is projected to widen slightly before returning to a balanced budget in 2034/35. Still, losses were capped by hopes that the upcoming meeting between U.S. President Trump and China's leader Xi Jinping could help ease global tensions. Financials dropped sharply while healthcare and consumer durables fell modestly. The big four banks plunged between 1.5% to 10.4% amid notable losses from Paladin Energy (-12.0%), Eagers Automotive (-2.2%), and Codan Ltd.(-1.0%).

Australian shares fell 55 points or 0.6% to 8,615 in Wednesday morning trade, sliding for a fourth straight session to a five-week low. Sentiment stayed cautious after Wall Street ended mostly lower Tuesday amid lingering concerns over the Iran war and a strong U.S. inflation print. Locally, business confidence remained deeply negative in April despite a slight rise from March’s historic drop. Still, losses were offset by the 2026/27 federal budget, which offers modest cost-of-living relief and sweeping tax reforms aimed at long-term fiscal repair. Key measures include restricting negative gearing to new builds from 2027, replacing the capital gains tax discount with a 30% minimum rate, and rolling out a $250 annual tax offset for workers. Financials led weakness, along with process industries, healthcare, and consumer durables. The big four banks fell between 1.3% to 7.7%, while other notable laggards included Wisetech Global (-3.4%), Ramsay Health (-1.6%), and Nextdc Ltd. (-0.6%).

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.