The S&P/ASX 200 fell 40 points, or 0.5%, to close at 8,631 on Wednesday, extending its pullback to a fourth consecutive session. The decline tracked broad losses on Wall Street overnight after hotter-than-expected April inflation data, driven in part by higher oil prices amid ongoing conflict in the Middle East.
On the fiscal front, the 2026/27 federal budget delivers modest cost-of-living relief alongside extensive tax reforms. However, it also projects a slowdown in Australia’s economic growth to 1.75% and a rise in inflation to 5% by mid‑2026. The budget deficit is expected to widen slightly in the near term before returning to balance in 2034/35.
Losses on the day were tempered by optimism that an upcoming meeting between U.S. President Trump and Chinese President Xi Jinping could help ease global tensions. Sector-wise, financials posted steep losses, while healthcare and consumer durables recorded more modest declines. The big four banks dropped between 1.5% and 10.4%. Notable decliners included Paladin Energy (-12.0%), Eagers Automotive (-2.2%), and Codan Ltd. (-1.0%).
