AU Evening Wrap: Australia Shares Slip 0.3% Amid Weak Retail Sales

Nine of eleven sectors finished lower. Shares of retailers, fast-food franchisers and travel-related companies fell, pulling the consumer discretionaries sector down by 0.7%. The heavyweight financial and materials sectors both slipped 0.1%. The property trusts sector finished flat, while consumer staples rose 0.2%.

Australian retail sales remained weak in April, according to data released by the Australian Bureau of Statistics. Retail turnover rose by only 0.1% in April, falling short of economists' expectations of a 0.3% rise. This result highlights the ongoing struggle of consumers in the face of elevated interest rates and rising costs, and signals a sluggish economy for some time to come. The weak result follows a 0.4% fall in retail sales in March, indicating that the retail sector is continuing to face challenges. The ongoing impact of the pandemic on consumer confidence and spending, as well as rising costs and interest rates, are likely to keep the sector under pressure in the coming months.

Oil prices have steadied after two days of gains, even as geopolitical tensions rise in the Middle East following the death of an Egyptian soldier during a clash with Israeli troops. Global benchmark Brent held steady near $US83 a barrel, while West Texas Intermediate edged towards $US79.

The death of the border guard at the Rafah crossing into Gaza on Monday has raised concerns about escalating tensions between Egypt and Israel, which could have implications for the oil market. The incident comes ahead of an OPEC+ meeting where the group will consider whether to increase production in response to rising demand and prices.