The S&P/ASX 200 slipped 10 points, or 0.1%, to close at 8,631 on Friday, giving back early gains after a modest advance in the previous session. Sentiment deteriorated as U.S. stock futures fell sharply, with investors closely tracking the second day of the Trump–Xi summit.
For the week, the benchmark shed 1.3%, reversing from earlier gains as persistent inflation concerns and proposed housing tax changes weighed on mortgage demand. The federal budget’s plan to restrict negative gearing in order to encourage new housing investment has heightened worries over a potential slowdown in mortgage growth.
Financial stocks were broadly weaker, although Commonwealth Bank outperformed, rising 1.9% after a steep decline earlier in the week. Miners also retreated on softer iron ore and copper prices: BHP fell 2.6% and Rio Tinto lost 3.2%, pulling back from record highs set earlier in the week. Other notable underperformers included PLS Group (-5.8%), Evolution Mining (-5.5%), and South32 Ltd. (-5.1%).
Traders now turn their attention to next week’s data releases, including May flash PMI figures, minutes from the Reserve Bank of Australia’s latest meeting, and April employment numbers.
