ASX 200 Drops 0.4% at Finish

Australian shares slipped on Tuesday, with the ASX 200 down 34 points, or 0.4%, to close at 8,658, snapping a two-day advance and pulling back from a two-week peak, as traders secured profits ahead of April CPI data due Wednesday. Headline inflation is expected to ease to 4.4% from March’s 2-1/2-year high of 4.6%, though still above the Reserve Bank’s 2–3% target. Meanwhile, the trimmed mean is seen edging up to 3.4% from 3.3%. Still, a surge in U.S. futures helped cap losses after U.S. forces reportedly carried out “self-defense” strikes in southern Iran. Selling pressure hit logistics, consumer non-durables, consumer services, and energy minerals, partly offset by gains in consumer durables and industrial services. ASX Ltd. tumbled 12%, its steepest fall in over a decade, on tech-driven cost warnings. Two of the big four banks fell between 0.2%–0.5% while other notable losers included Aristocrat Leisure (-3.4%), Insurance Australia Group (-2.1%), and Challenger Ltd. (-4.8%).

Australian shares dipped 45 points or 0.5% to 8,647 on Tuesday morning trade, ending gains in the prior three sessions and pulling back from a two-week high. Traders booked profits amid caution ahead of domestic CPI data later this week. Inflationary pressures, coming back since mid-last year, have already prompted three rate hikes so far this year. In March, figures hit their highest since September 2023, driven in part by surging fuel costs. Still, a rally in U.S. stock futures capped losses, reflecting hopes for a breakthrough in the U.S.-Iran peace talks. Financials, consumer non-durables, and process industries dragged the ASX 200 lower, amid notable declines in Goodman Group (-3.6%), Genesis Minerals (-1.7%), and Ampol Ltd. (-1.2%). ASX Ltd. tumbled 9.1% after reporting that it expects total expenses to rise between 18% and 21% in FY 2027, driven by higher technology spending, regulatory remediation, and growth investments. The four major banks fell between 0.8% to 1.8%.

The ASX 200 rose 35 points or 0.4% to end at 8,692 on Monday, up for the third session amid a surge in U.S. stock futures as hopes of a deal to reopen the Strait of Hormuz lifted market sentiment, even as President Trump signaled he would not “rush” into a deal. Trump also said he wants Kevin Warsh to independently lead the Fed after a shakeup at the U.S. central bank. However, gains were capped by caution ahead of U.S. PCE data later this week. Locally, Australia's April CPI will be released in the coming days, after March figures hit their highest since September 2023, driven in part by fuel costs. Meanwhile, U.S. stocks will be closed today for a holiday. Most sectors were in the green, led by non-energy minerals, process industries, producer manufacturing, and consumers. Heavyweight BHP Group gained 0.7% while other top performers included Qantas Airways (5.7%), Northern Star Resources (5.4%), and Evolution Mining (4.5%). Three of four major lenders rose between 0.3% to 0.8%.