FX.co ★ Australian Equities Retreat as Ceasefire Rally Fades

Australian shares fell 32 points, or 0.4%, to 8,920 in early Thursday trade, erasing strong gains from the previous two sessions as traders took profits after the market climbed to a four-week high on optimism over a two-week ceasefire between the U.S. and Iran. Sentiment was further tempered by caution ahead of key CPI and PPI data from China, Australia’s largest trading partner, due Friday.

On the domestic front, concerns mounted that Australian living standards could decline in the near term amid persistent cost pressures, while economists warned that Canberra may face its weakest GDP growth since the early 1990s if the conflict in the Middle East persists.

Sector-wise, commercial services, non-energy minerals, and consumer durables dragged on the market, though gains in energy minerals, communication, and utilities helped limit losses. Ramelius Resources dropped 4.4% on expectations it may downgrade its FY 2026 guidance. Other notable decliners included Xero Ltd. (-5.2%), Evolution Mining (-3.3%), Pro Medicus (-2.4%), and BHP Group (-1.4%).