The S&P/ASX 200 was little changed around 8,600 in Wednesday morning trade, pausing after gains in the previous session as sentiment was pressured by escalating tensions in the Middle East and a narrow back-to-back rate hike by the RBA. The decision surprised markets with a tight 5–4 split vote, and Governor Bullock emphasized that the discussion centered on timing rather than direction, while warning that inflation risks persist, reinforcing a hawkish policy stance. Markets increased the probability of another hike in May, with additional tightening still priced in by August.
On the geopolitical front, Iranian state media confirmed the death of the secretary of the Supreme National Security Council, and renewed strikes on UAE energy infrastructure intensified worries over prolonged supply disruptions. Rate-sensitive financials led the declines, with the four largest banks down between 0.1% and 2%. The mining sector was broadly flat: gold miners slipped 0.6%, while heavyweights BHP and Rio Tinto rose 0.5% and 0.2%, respectively.
