Australian shares fell 46 points, or 0.5%, to 8,641 in Thursday’s morning trade, extending their losing streak to eight sessions and touching a three-week low. Sentiment remained fragile as cost pressures persisted, with annual consumer inflation quickening to 4.6% in March from 3.7% in February. The stronger-than-expected reading reinforced expectations of further cash rate increases at next week’s Reserve Bank meeting.
In the US, a divided Federal Reserve left interest rates unchanged on Wednesday as policymakers weighed stubborn inflation against an impending leadership transition. Geopolitical risks also intensified after President Trump instructed aides to prepare for a prolonged blockade of Iran, pushing oil prices higher.
Major laggards on the local market included Woolworths Group (-6.9%), Coles Group (-4.5%), Northern Star Resources (-3.3%), and BHP Group (-1.6%). Despite the recent pullback, the ASX 200 remains on course for gains in April, up nearly 2% to date, supported by bargain hunting following an almost 8% slide in March.