Australian shares declined on Tuesday as investors await the May 2026 Federal government budget in Australia, which is expected to change the taxation policy around investments.
The S&P/ASX 200 Index fell 0.36%, or 31.10 points, to close at 8,670.70, setting a new 20-day low.
Brent crude oil futures rose to around $105 per barrel as the US President Donald Trump said the ceasefire with Iran was "on life support." President Trump is set to visit China this week.
On the domestic front, the ANZ-Roy Morgan Australian consumer confidence fell 3.1 points to 64.1 in the week of May 4 to May 10, ANZ reported. The four-week moving average edged down 0.1 points to 65.9 points.
Australian consumer confidence fell to near historic lows after the Reserve Bank of Australia raised the cash rate to 4.35%, with broad-based declines led by a sharp drop in household finances despite a slight easing in inflation expectations on lower petrol prices, according to ANZ economist Sophia Angala.
Business confidence in Australia rose 5 points to negative 24 in April, driven by partial recoveries in retail, construction, and recreation and personal services, although trend confidence remained strongly negative across all industries and regions, National Australia Bank said.
In company news, Life360 (ASX:360) reported first-quarter earnings of $0.03 per share, down from $0.05 a year earlier. Revenue for the three months ended March 31 was $143.1 million, compared with $103.6 million a year earlier. Its shares fell 11% on market close.
Santos (ASX:STO) made a final investment decision to proceed with the Agogo production facility tie-in project in Papua New Guinea after the approval by the PNG LNG joint venture to deliver gas from the facility to the PNG LNG gas pipeline. First gas is expected to be produced in the second quarter of 2028.
Lastly, DroneShield (ASX:DRO) received a notice from the Australian Securities and Investments Commission (ASIC) asking the company to cooperate with an investigation into market disclosures it made in November 2025. The company said it will lend its full cooperation to the regulator. Its shares fell 10% on market close.