Australia Shares Down Slightly

Australian equities edged lower to hover around 8,623 in early Thursday trade, marking a fifth straight decline and a five-week low. Risk appetite waned after Canberra’s 2026 budget warned of severe fallout from the fuel crisis, with measures unlikely to shield the economy fully. Traders also cautiously awaited May inflation expectations data after April’s reading surged to the highest since late 2022, underscoring renewed cost pressures that have persisted since the second half of last year. Still, weakness was capped by hopes that the upcoming meeting between U.S. President Trump and China's leader Xi Jinping could ease global trade tensions. Commercial services, consumer non-durables, and healthcare weighed on the ASX 200, though strength in consumer services helped limit the decline. The big four banks fell between 0.2% to 1.7%. Other notable laggards were Lynas Rare Earths Ltd. (-2.0%), Xero Ltd. (-1.3%), and PLS Group (-1.2%).

ASX200 decreased to 8582.00 Index Points, the lowest since April 2026. Over the past 4 weeks, Australia Stock Market Index (AU200) lost 3.92%, and in the last 12 months, it increased 3.97%.

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%).