Australian Shares Poised for Weekly Losses

Australian equities edged down 0.1% to 8,751 on Friday morning, retreating for the fifth straight session as U.S. stock futures were slightly lower following gains on Wall Street overnight after President Trump said Iran wanted to make a deal after the U.S. launched fresh strikes against the country. Meanwhile, caution lingered after the International Monetary Fund cut its 2026 growth forecast for Australia to 1.9% from the previous projection of 2%, warning that annual inflation will remain stubbornly high this year at around 4%. Healthcare, retail trade, and transport dragged the ASX 200, though strength in non-energy minerals, communications, and industrial services capped declines. For the week, markets are on track to post a weekly decline, down around 1.0% so far after gaining in the prior period. Among notable laggards were Pro Medicus (-4.4%), Reece Ltd. (-2.1%), Lynas Rare Earths (-1.9%), and Ramsay Health Care (-1.4%).

The ASX 200 fell 23 points or 0.3% to end at 8,762 on Thursday, down for the fourth session after U.S. President Trump dismissed further talks with Iran and warned of additional strikes, eroding hopes for Middle East stability. Meanwhile, the International Monetary Fund trimmed its 2026 growth forecast for Australia to 1.9% from the previous projection of 2%, adding that consumer price inflation will remain stubbornly high, likely around 4% for 2026. Process industries, non-energy minerals, healthcare, and consumer non-durables weighed, partly offset by strength in consumer durables, energy minerals, retail trade, and industrial services. Heavyweight BHP Group slipped 1.1% while Rio Tinto tumbled 3.3%, weighed by lower copper prices. Gold stocks also fell, with Evolution Mining and Northern Star Resources slipping 1.7% and 0.9%, respectively. Three of four big banks lost between 0.1% and 0.8%.

Australian shares dipped 73 points or 0.8% to 8,711 in early deals on Thursday, sliding for the fourth straight session amid weakness in most sectors, notably non-energy minerals, healthcare, process industries, and financials. Nerves persisted ahead of June CPI and PPI data in main trading partner China later in the day. Locally, Reserve Bank Assistant Governor Sarah Hunter warned that if inflation expectations rise, restoring stability may require “some period of low inflation and higher unemployment.” Still, losses were capped by U.S. stock futures that edged higher following a mixed session on Wall Street overnight as geopolitical tensions and rising oil prices weighed on sentiment. The four big banks lost between 0.8% and 1.4% while other notable decliners included heavyweight BHP Group (-1.6%), Pro Medicus (-2.7%), Wisetech Global (-2.1%), and Sonic Healthcare (-1.8%). In contrast, energy names gained, such as Woodside Energy (1.2%) and Santos (0.9%).