EZB8RISK / Market Briefing

Australian shares continue their four-week slide, with borrowing costs still the dominant theme. A smaller-than-forecast budget deficit offers the government some fiscal breathing

Australian shares continue their four-week slide, with borrowing costs still the dominant theme. A smaller-than-forecast budget deficit offers the government some fiscal breathing room, while officials point to easing inflation pressure, yet housing auction clearances sitting at a ten-week low keep rate-hike expectations alive. The tension between improving fiscal headlines and sticky rate fears remains unresolved, and no fresh data has arrived to tip the balance.

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