Australia's ASX 200 fell 55 points, or 0.6%, to close at 8,911 on Thursday, ending a four-session winning streak. Early gains reversed as sentiment deteriorated after U.S. President Donald Trump cautioned that the new ceasefire with Iran was not final, reviving concerns that the Middle East conflict could flare up again. At the same time, the U.S. Federal Reserve left interest rates unchanged, as expected, but indicated that its next move may be a rate hike, adding to investor wariness.
Domestic equities pulled back from a two-month high, weighed down by profit-taking, lingering inflation worries despite a cumulative 75 bps of rate increases by the Reserve Bank of Australia since January, and fears that a potentially severe El Niño in late 2026 could further intensify price pressures. Sector-wise, non-energy minerals, consumer services, and utilities mostly traded lower. Among the major banks, three of the four declined between 0.6% and 1.1%. Notable underperformers included Xero (-4.3%), Wisetech Global (-3.7%), PLS Group (-2.4%), and ASX Ltd. (-2.4%).
