Global Markets | Australian shares slide as banks, CSL drag; US‑Iran tensions hit risk appetite

Australian stocks fell on Monday, pressured by financials and healthcare firms, with CSL slumping to a near-decade low after cutting its earnings outlook, while concerns over a ‌deadlock in U.S.-Iran ⁠negotiations ⁠dampened investor appetite for risk.

The S&P/ASX 200 index ended 0.5% lower at 8,701.8.

Biotech darling CSL ​tumbled 16% after it slashed its full-year 2026 outlook and flagged a $5  billion impairment. The stock dragged ​the healthcare index 6.5% lower to an over eight-year low.


However, the stock could begin to appeal to long-term investors at these levels if management succeeds ​in steadying the business, said Tim Waterer, chief market ⁠analyst at ‌KCM Trade.

"For the broader healthcare sector, it serves as ​a reminder that not ​all companies are immune to rising costs and ⁠demand shifts, though quality names with stronger pricing power should fare ​better."

Adding to caution, comments from U.S. President Donald Trump rejecting ​Iran's proposal for talks stirred fresh worries of a prolonged geopolitical standoff, pushing oil prices higher.

Energy stocks in Sydney rose 1.1%, with oil major Woodside rising 1.5%.

Financials dropped 0.8%, with Waterer attributing the drop to expectations of a higher-for-longer interest rate and fears of rising bad debts. Three of the ‌Big Four banks lost between 0.4% and 2.4%.

Attention now shifts to Tuesday's federal budget, with investors seeking relief on living costs ​and housing.

A ​disciplined budget could give ⁠the bourse a short-term sentiment boost, Waterer said, adding that an overly stimulatory approach could also risk reviving rate-hike concerns.

Australia will phase in cuts to capital ​gains tax discounts, giving property investors extra time to lock in existing tax benefits, the AFR reported.

Real estate stocks closed 0.3% higher.

Miners advanced 0.3% on firmer iron ore and copper prices, with BHP and Rio Tinto up 0.7% and 0.6%, respectively.

New Zealand's benchmark S&P/NZX 50 index rose 0.3% to 13,210.48 points.