23.04.202601:49:05UTC+00Australia Stocks Dip for Third Session

Australian shares fell 50 points, or 0.6%, to 8,793 in early Thursday trade, extending losses for a third straight session and hovering near a two-week low. Sentiment weakened after a sharp drop in U.S. equity futures, triggered by renewed uncertainty in the Middle East, as Iranian officials reportedly refused to reopen the Strait of Hormuz following President Trump’s ceasefire extension.

On the domestic front, households and businesses remain under pressure from elevated mortgage rates, surging energy costs, and broader price strains linked to geopolitical tensions. With the Reserve Bank scheduled to meet in early May, markets are increasingly pricing in another cash rate hike.

Some of the downside was limited by April PMI data, which indicated signs of recovery across both manufacturing and services. Still, process industries, consumer non-durables, and financials led the broader market decline. Notable underperformers included Lynas Rare Earths (-5.1%), Aristocrat Leisure (-2.2%), and Medibank Private (-3.5%), while the four major banks shed between 0.2% and 1.3%.