26.03.202605:57:01UTC+00ASX 200 Eases as Inflation Risks Linger

The S&P/ASX 200 edged lower on Thursday, closing near 8,525 after two consecutive sessions of gains, as sentiment weakened following a sharp decline in U.S. stock futures. The pullback came amid conflicting signals from Washington and Tehran over Middle East peace efforts: U.S. officials said talks were underway, while Iran insisted it had no intention of negotiating.

Locally, RBA Assistant Governor Christopher Kent cautioned that a prolonged conflict could push inflation and long-term inflation expectations higher, emphasizing the importance of preventing surging energy prices from destabilizing those expectations.

Miners slipped 0.6% on softer iron ore prices, pressured by concerns over potential production cuts in China’s Tangshan steelmaking hub. Gold stocks declined 2.1%, weighed down by Ramelius Resources, which fell 3.3%. Financials were broadly flat, with mixed performance among the big four banks.

In contrast, energy stocks gained 1.5% despite a nearly 2% drop in oil prices on Wednesday, supported by advances in Woodside Energy (up 2.3%) and Yancoal Australia (up 1.1%).