Sydney, May 1, 2026, 03:08 AEST
Australian stocks slipped to their lowest finish in a month on Thursday, as the S&P/ASX 200 shed 21.20 points, or 0.24%, to close at 8,665.80—marking the index’s eighth consecutive drop and its weakest level since April 2. Losses in miners, coupled with Woolworths’ warning on fuel costs, more than offset strength from banks and energy shares.
The oil shock isn’t just a headline anymore—it’s starting to show up in Australian earnings and rate risk. Brent crude hit $126.41 a barrel, a level not seen since March 2022, before pulling back. Reuters noted supply disruptions continued, with the Strait of Hormuz still shut.
Rate conditions aren’t offering much relief right now. Australian consumer prices jumped 1.4% in the first quarter—the biggest quarterly move since late 2023. Annual inflation sped up to 4.1%. The trimmed mean, which excludes volatile outliers, hit 3.5%, keeping it outside the Reserve Bank of Australia’s preferred 2% to 3% band. “Points to a rate hike” next week, Deloitte Access Economics partner Stephen Smith said, though he cautioned it’s not a lock yet. Reuters
Woolworths clearly took the heaviest blow. Shares tumbled as much as 9.8% in early trade after the grocer flagged that fiscal 2026 Australian Food earnings growth wouldn’t hit the upper end of guidance, citing pressure from fuel costs and heavier spending to keep shoppers loyal. The company is also set to freeze prices on 300 staple items starting May 1.
Woolworths posted third-quarter group sales of A$18.1 billion in its ASX release, a 4.5% rise on the year. Chief Executive Amanda Bardwell flagged “early signs” that the Middle East conflict was having an impact on both customers and staff—many still feeling the squeeze from cost-of-living pressures.
Not everything was down across the board. According to ASX’s daily market wrap, trading volumes came in above the usual mark, with 103 stocks finishing higher—so the slide in the index owed more to losses among the heavyweights than to any sweeping sell-off.
Still, those losses across major sectors took a toll. Miners slumped 2.7%. Consumer staples sank 5%. Financials managed a 1% rise, and energy advanced 1.4%. Tim Waterer, chief market analyst at KCM Trade, said the ASX 200 could “remain range-bound or test lower supports” if energy fails to provide support. The Business Times
BHP, Rio Tinto, and Fortescue all traded lower, dropping anywhere from 1.4% to 1.6%. On the other hand, oil names Woodside and Santos climbed, up by as much as 3% and 1.9%. Gains in the big four banks, ranging from 0.3% to 1.1%, helped cushion the index.
ASX Ltd jumped after tapping company veteran Darren Yip as interim CEO, starting May 29. The shares climbed up to 3.9% to hit A$60.08, a level not seen since September 2025, according to Reuters.
The risk doesn’t just run one direction. If inflation data shows more softness, the RBA could find cover to hold fire, with ABC noting that market odds for a hike to 4.35% have slipped to roughly 75%. A sharp drop in oil prices would bolster that argument. But if fuel costs stay stubborn and the central bank pushes rates higher, consumers and company margins both get hit.
