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RBA Press Conference: Oil Shock Will Worsen Housing Crises, Says Bullock

Reserve Bank of Australia Lifts Cash Rate by 25 Basis Points to 4.35%

The Reserve Bank of Australia (RBA) has decided to increase the official cash rate by 25 basis points to 4.35%, according to a Tuesday statement by the central bank.The bank said inflation picked up materially in the second half of 2025, with information since the beginning of 2026 confirming that some of the increase reflected greater capacity pressures.The RBA noted that the Middle East conflict has resulted in sharply higher fuel and related commodity prices already adding to inflation, with early signs that many firms experiencing cost pressures are looking to increase prices of goods and services.The RBA's baseline forecast, which assumes the conflict is resolved soon and fuel prices decline, sees underlying inflation peaking higher than expected in February before declining as demand growth slows and capacity pressures ease in response to higher interest rates, the statement added.Financial conditions have tightened this year, with money market interest rates, government bond yields, and the exchange rate all rising, although credit remains readily available to both households and businesses, the bank said.The RBA said a longer or more severe conflict could put further upward pressure on global energy prices, pushing up near-term inflation and potentially embedding higher prices into longer-term inflation expectations, while higher prices and prolonged uncertainty may also weigh on growth in Australia's major trading partners and domestically.Higher fuel prices are adding to inflation, with indications of likely second-round effects on prices for goods and services more broadly, on top of the high inflation recorded around the start of 2026, reflecting capacity pressures, according to the statement.In light of these considerations, the board assessed that inflation is likely to remain above target for some time with risks tilted to the upside, making a rate increase appropriate, with eight members voting to raise the cash rate and one member voting to leave it unchanged at 4.1%, the RBA said.

Reserve Bank of Australia Lifts Cash Rate by 25 Basis Points to 4.35%

Australia Service Sector Returns to Expansion in April, S&P Says

Australia's service sector returned to expansionary territory in April, helped by a recovery in business activity following a contraction in March.The S&P Global Australia Services PMI Business Activity Index rose to 50.7 in April from 46.3 in March.A reading below 50 denotes a contraction, while a reading above 50 means an expansion.While activity has increased in 26 of the past 27 months, expansion at the beginning of the second quarter was only slight, according to S&P Global.An increase in staffing levels in April, the 16th in as many months, aided the expansion of business activity despite the war in the Middle East, S&P said.Companies increased employment in anticipation of workload improvements in the months ahead, according to the debt watcher.Higher staffing levels also meant backlogs declined for the second straight month and fell the sharpest since November 2025, the report said.However, business growth was limited to the information and communication and the consumer services sectors, while a decline was seen in transport and storage, finance and insurance, and real estate and business services, according to the report.Despite the resumption of business activity growth, companies saw fewer orders in April due to inflationary pressures stemming from the war in the Middle East, S&P said.Higher fuel costs lifted overall input costs in April, with 43% of those surveyed saying input prices rose in March. Inflation surged sharply compared with the previous month, S&P said.Expansion plans helped raise optimism in the service sector, with firms also expressing hope that a resolution to the Middle East crisis could help new orders recover, according to S&P.The S&P Global Australia Composite Output Index jumped to 50.4 in April from a contraction of 46.6 in March, indicating a slight increase in business activity in the private sector.

Australian Farmland Prices Hit Record in 2025 But Market Now Cooling, Bendigo Bank Says

Australia's farmland market hit a new national record median price of AU$10,516 per hectare in 2025, but is now exhibiting clear signs of a slowdown, Bendigo Bank said in a Tuesday report.The market climbed 2.8% last year, which was the slowest annual growth rate in 12 straight years of expansion, down from the double-digit growth registered between 2018 and 2022, according to the report."A subdued start to [2025] gave way to a more confident market in the second half driven by improved seasonal conditions, three [Reserve Bank of Australia] cash rate cuts, and strong livestock prices," said Eliza Redfern, senior manager, industry insights at Bendigo Bank Agribusiness."However, widespread, uniform growth has fallen, and buyers are now more discerning, prioritizing asset quality, water security, and long-term returns," Redfern added.The report found varying performance across states, with prices rising over 20% in South Australia and nearly 6% in Queensland, but falling 0.4% in Victoria and almost 21% in Tasmania.Bendigo Bank expects the Australian farmland market growth to continue to level off in the current year amid a more challenging environment for farmers.

ASX Midday Sector Update: Information Technology Stocks Gain, Materials Struggle

Information technology stocks advanced 1.2% in midday trading Tuesday as markets awaited an interest rate decision from the Australian central bank due later in the afternoon.WiseTech Global (ASX:WTC) gained more than 6%, but Gentrack Group's (ASX:GTK, NZE:GTK) Australian-listed shares tumbled past 32% after the company cut its fiscal year 2026 revenue guidance.Meanwhile, materials stock led decliners with a fall of 1.2%, as nearly all sectors were in the red after tensions around the Strait of Hormuz intensified following a suspected Iranian attack on a United Arab Emirates oil facility.Regis Resources (ASX:RRL) agreed to acquire Vault Minerals (ASX:VAU) in a merger of equals to create a major gold producer with a pro forma market capitalization of about AU$10.7 billion. Regis shares fell nearly 5% and Vault gained over 4%.

Australia's Household Spending Rises in March

Australia's seasonally adjusted household spending rose 1.6% to AU$80.41 billion in March, following a 0.3% increase in the previous month, the Australian Bureau of Statistics reported on Tuesday."Household spending rose strongly in March, driven by a 5.1% rise in transport costs as fuel prices climbed in response to the conflict in the Middle East," said Tom Lay, the bureau's head of business statistics.Seven of the nine spending categories rose in March, led by transport, food, and miscellaneous goods and services.Goods spending rose 2.9% month on month in seasonally adjusted current price terms, driven by higher expenditure on motoring goods, food, and recreation and culture, while services spending increased by 0.1%, supported by gains in other services, rail and road transport, and recreational and cultural services.Household spending rose in all eight states and territories in March, with the strongest increases recorded in Tasmania, Queensland, and New South Wales.The seasonally adjusted household spending volumes indicator increased by 0.7% in the March quarter, reaching 226.54 billion compared with the previous quarter.Household spending on discretionary goods and services rose 0.6% month on month, driven by higher spending on recreation and culture goods, other services, and clothing and footwear, while spending on non-discretionary goods and services increased by 3.4%, supported by greater expenditure on motoring goods, food, and rail and road transport.Compared with the year-earlier period, household spending rose 6.3% in March.

Australian Consumer Confidence Falls, Remains Close to Lowest Level Since 1973, ANZ Says

Australian consumer confidence fell 0.6 points in the week of April 27 to May 3 to 67.2 points, remaining close to its lowest level since the series began in 1973, according to a Tuesday note from ANZ.The four-week moving average rose 1.2 points to 66 points.Weekly inflation expectations were up 0.1 percentage point to 6.7%, while the four-week moving average eased to 6.8%.Current financial conditions over the last year declined 0.6 points to 62.4, while financial conditions over the next 12 months increased 1.4 points to 76.8.Household confidence in economic conditions slightly weakened, likely reflecting last week's first-quarter inflation data, ANZ economist Sophia Angala said.Short-term economic confidence over the next 12 months was up 0.9 points to 56.9, while medium-term economic confidence over the next five years dropped 1.9 points to 76.4.Meanwhile, the "time to buy a major household item" sub-index decreased 2.4 points to 63.7.The Reserve Bank is anticipated to increase the cash rate by 25 basis points to 4.35% in its decision on Tuesday, Angala said.

Australian Services Sector Edges Back into Growth Amid Inflation Pressures, Weak Demand

Australian services activity edged back into expansion in April as firms increased hiring and output, but persistent inflation driven by higher fuel costs linked to Middle East tensions continued to weigh on new orders and keep business sentiment subdued, according to a monthly survey by S&P Global released Tuesday.The S&P Global Australia Services PMI Business Activity Index rose to 50.7 in April from 46.3 in March, signaling a return to slight expansion after a brief contraction.Rising staffing levels helped firms expand activity despite falling orders driven by higher Middle East war-related fuel costs, with growth limited to information and communication and consumer services, while other sectors declined, per the survey.Business activity returned to growth in April, but new orders fell for a second consecutive month at a slightly faster pace as the Middle East conflict weighed on demand, even though export orders rebounded after a sharp decline the previous month.Higher fuel prices pushed up input costs and accelerated inflation to its fastest pace since August 2022, with over 43% of firms reporting increases and the transport and storage sector recording the sharpest rises in both input and selling prices.Output prices in Australia's service sector rose rapidly as fuel costs were passed through to customers, marking the fastest inflation since January 2023, while employment continued to expand for the sixteenth consecutive month at a solid pace, the survey said.Business expansion plans lifted the 12-month outlook despite subdued sentiment, while rising employment and weaker new orders led firms to clear backlogs for a second month at the fastest pace since November 2024.The Composite Output Index rose to 50.4 in April from 46.6 in March, moving back above the 50 no-change mark and indicating a slight recovery in business activity after the previous month's decline.Output rose in April due to services growth while manufacturing fell, as new orders declined amid strong inflation, and input and output prices increased at their fastest pace since 2022.Staffing levels increased strongly, exceeding the rise seen in March, while business sentiment declined further to its lowest point in 22 months, the survey added.

ASX Preview: Australian Shares Set to Fall as US-Iran Tensions Escalate; Westpac Banking Posts Higher Fiscal H1 Adjusted Earnings, Net Operating Income

Australian shares are poised to fall on Tuesday after renewed US-Iran hostilities and attacks around the Strait of Hormuz rattled global markets, sending oil prices higher and heightening fears over disruption to a key energy shipping route.Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average fell 0.4%, 0.2%, and 1.1%, respectively.In the macroeconomy, Australian services activity edged back into expansion in April as firms increased hiring and output, but persistent inflation driven by higher fuel costs linked to Middle East tensions continued to weigh on new orders and keep business sentiment subdued, according to a monthly survey by S&P Global released Tuesday.Reserve Bank of Australia's monetary policy decision is due at 2:30 pm Sydney time.In corporate news, Westpac Banking (ASX:WBC) reported Tuesday fiscal first-half earnings of AU$1.014 per share excluding notable items on net operating income of AU$11.28 billion, compared with earnings of AU$0.998 on net operating income of AU$10.99 billion a year earlier.Regis Resources (ASX:RRL) agreed to acquire Vault Minerals (ASX:VAU) in a merger of equals to create a major gold producer with a pro forma market capitalization of about AU$10.7 billion.Australia's benchmark index fell 0.4% or 32.7 points to close at 8,697.10 on Monday.

Middle East War Weighs on Asia-Pacific Corporates' Credit Profiles, Fitch Says

The Middle East will hit many Asia-Pacific corporate sectors through oil price hikes, shipping and supply chain disruptions, dampened demand, and delayed cyclical rebounds, Fitch Ratings said in a recent release.The war could have a lingering economic and business impact in the second half of 2026 even if it ends earlier, since it would take time for markets to normalize, the rating agency said.Corporates in the region also face other developments that are credit-impacting, such as geopolitical tensions, sanctions, and tariff uncertainties, according to Fitch.Meanwhile, growth varies within the region, with China exhibiting declining domestic demand, lingering price competition, and excess capacity that weigh on companies in the consumer, industrial, building materials, and automotive sectors, Fitch said.India and some Southeast Asian countries have solid domestic growth and infrastructure spending as well as robust household consumption, anchoring credit trends in local demand-tied sectors, according to the rating agency.Fitch still sees EBITDA margins to remain strong and rise above 15% on aggregate for its issuers in the region, supporting improved free cash flow generation.

Asia Week Ahead: PMI Reports; Central Bank Decisions; and Inflation Prints

For the week ahead in Asia, the economic calendar is packed with S&P Global's monthly purchasing managers' index reports, inflation prints, and central bank decisions across the region.Monday brings a slate of S&P Global manufacturing PMI reports for April, alongside Indonesia's inflation and trade figures.On Tuesday, markets will turn to the Reserve Bank of Australia's interest rate decision, while Thailand and the Philippines release April inflation data.Wednesday features South Korea's April inflation print and New Zealand's first-quarter labor-market report, along with PMI readings from India, China, Hong Kong and Singapore.On Thursday, Malaysia's central bank decision will be in focus, alongside Taiwan's April inflation data and the Philippines' first-quarter GDP report.On Friday, Taiwan's April trade data and Malaysia's March industrial production figures will be due, before China closes out the week with April trade figures on Saturday.Here's what to watch in the week ahead.MONDAY, May 4The week kicked off with a slate of S&P Global purchasing managers' index reports covering manufacturing activity during April.Most economies in the region saw a rise in output despite the ongoing conflict in the Middle East which has pushed oil prices upwards.Malaysia's manufacturing sector expanded at its fastest pace in four years in April, supported by stronger output and a return to growth in new orders.The S&P Global Malaysia Manufacturing Purchasing Managers' Index rose to 51.6 in April from 50.7 in March, marking a second straight month of expansion.Output grew at the fastest pace since December 2021, while new orders increased as firms and clients built safety stocks amid uncertainty linked to the Middle East war.Output activity also expanded in South Korea, India, and Taiwan, according to S&P Global.Meanwhile, Vietnam's manufacturing sector also expanded, albeit at a slower pace.The S&P Global Vietnam Manufacturing PMI slipped to 50.5 in April from 51.2 in March, a seven-month low, signalling a tenth straight month of expansion but only marginal growth.In contrast, Indonesia's manufacturing sector slipped into contraction in April as cost pressures intensified due to material shortages and delays linked to the Middle East conflict.The S&P Global Indonesia Manufacturing Purchasing Managers' Index fell to 49.1 in April from 50.1 in March, dropping below the 50 mark for the first time in nine months.Manufacturing activity similarly slipped in the Philippines as new orders fell sharply and cost pressures intensified.Indonesia released inflation figures, noting a 2.4% year on year rise in prices during April -- slower than the 3.5% recorded a month prior.The island state also booked a trade surplus of $5.55 billion in the first quarter, supported by a strong non-oil and gas balance despite higher import growth, according to official data released by Statistics Indonesia.The Melbourne Institute released its monthly inflation gauge, noting another increase in April, mainly driven by higher recreation-related prices. The monthly cost of living also increased in April, especially for employees and self-funded retirees.TUESDAY, May 5An interest rate decision in Australia will capture headlines on Tuesday.The Reserve Bank of Australia is likely to rate hikes by 25 basis points to 4.35% as persistent inflation pressures and rising fuel costs linked to Middle East supply disruptions keeps the central bank on a hawkish path even as global peers hold steady.Thailand and the Philippines will release inflation data for April.Economists at ING said they expect the Philippines' headline inflation to rise above 5% as the government passes on the impact of higher global oil prices onto consumers. The Philippines' inflation climbed to 4.1% in March.Thailand is similarly expected to see a rise in consumer prices during April. According to a consensus compiled by Trading Economics, headline inflation could clock in at 1.7% on an annual basis, compared with a 0.08% decline in March.First-quarter gross domestic growth data will be due in Indonesia. DBS said it was forecasting 5.6% growth for the quarter thanks to government spending and festive spending during the period, the Wall Street Journal reported.Hong Kong will similarly release its first-quarter advance GDP growth estimate on Tuesday.Meanwhile, March retail sales figures will be expected in Singapore.On the activity front, S&P Global will release PMI reports manufacturing activity in Thailand and services and composite activity in Australia.WEDNESDAY, May 6Another inflation print, this time in South Korea.Economists at ING said they expect consumer prices to rise at a faster pace in April despite attempts by Seoul to rein in the impact of rising oil costs on consumers. A consensus compiled by Trading Economics indicated headline inflation could clock in at 2.6%.In March, South Korea's annual inflation rose to 2.2%, breaching the central bank's 2% target.First-quarter labor data from New Zealand will also be in the news.CommBank expects headline labor-market figures to remain weak, forecasting just 0.1% quarterly employment growth and a rise in unemployment to 5.5%, compared with Trading Economics consensus estimates of 0.3% employment growth and a 5.4% jobless rate for the first quarter."We do not envisage a labor market recovery until 2027, reflective of adverse impacts from geopolitical ructions," CommBank said in a preview.The Philippines will similarly release labor data for March, as well as industrial production figures.ING said it expects unemployment to edge higher. "On the industry side, weak soft construction activity should continue to weigh on growth," ING said.Additional S&P Global PMI reports covering services and composite activity in India and China, as well as overall activity in Hong Kong and Singapore, will be due.A business confidence report will be due in Thailand, while Hong Kong's March retail sales figures will also be on display.THURSDAY, May 7Malaysia's central bank will meet for its interest rate decision, with no change expected in the 2.75% policy rate.RHB Bank said it expects Bank Negara Malaysia to hold rates as growth remains steady and inflation remains in check, the Wall Street Journal reported.Taiwan's April inflation print will be due, with analysts looking for signs on how the Iran war was weighing in on prices. ING said it expects to see inflationary pressure picking up after limited pass through of energy prices in March.Australia will release March trade figures. The country's trade surplus could fall to A$4.45 billion from the A$5.69 billion recorded in the month prior, according to a consensus compiled by Trading Economics.CommBank said it expects the goods trade balance to decline due to rising fuel imports in the wake of the Iran conflict.The Philippines' first-quarter GDP growth figures will be expected. ING said the Philippines' economy could recover to a growth of 4.3% year on year thanks to favorable base effects and some pick-up in government spending.The Philippines' economy grew by 3% last quarter.Another confidence report covering consumer sentiment will be due in Thailand.FRIDAY, May 8Markets will be on the lookout for Taiwan's trade data for April.ING said it expects the island state's trade surplus to rise to $21.6 billion from $21.3 billion in the month prior. "We're looking for another strong month, with 59.3% YoY export growth and 35.5% import growth," ING said in a preview.In Malaysia, March industrial production figures will be due.S&P Global will release PMI reports covering services and composite activity in Japan.SATURDAY, May 9China will release its April trade data on Saturday.The world's second largest economy could record a surplus of $82.4 billion for the month, rising from $51.13 billion in March, according to a consensus compiled by Trading Economics.Analysts at DBS expect a sharp uptick in surplus, with export growth more than doubling to 8.4% from the 2.5% rise seen in March, the WSJ reported.

Australian Shares Decline; Viva Energy Expects Geelong Refinery Production to Reach Over 90% Capacity in June

Australian shares closed lower on Monday as investors await the Reserve Bank of Australia's monetary policy board meeting on Tuesday.The S&P/ASX 200 Index fell 0.37%, or 32.70 points, to close at 8,697.10.Brent crude oil futures inched up to $108.36 per barrel. US President Donald Trump said the US would start guiding neutral ships in the Persian Gulf through the Strait of Hormuz.On the domestic front, the ANZ-Indeed Australian job ads fell 0.8% month on month in April to a seasonally adjusted 113.3, following a revised 3.2% decrease to 114.2 in March, ANZ reported.Seasonally adjusted data revealed that the total number of dwellings approved in Australia fell by around 11% to 17,300 in March from 19,339 in the previous month, figures from the Australian Bureau of Statistics showed.The Melbourne Institute said its monthly inflation gauge recorded another increase in April, mainly driven by higher recreation-related prices, largely due to rising airfares.In company news, Viva Energy Group (ASX:VEA) expected repairs needed to restart the residue catalytic cracking unit at its fire-hit Geelong Refinery to take about six weeks before the unit returns to operation in June. The refinery expects to produce diesel and jet fuel at about 80% of capacity and petrol at roughly 60% while the unit remains offline. Its shares fell 4% at market close.National Australia Bank (ASX:NAB) reported fiscal first-half cash earnings of AU$0.861 per share, down from AU$1.145 a year earlier. Net operating income for the six months ended March 31 was AU$10.87 billion, compared with AU$10.27 billion a year earlier. Its shares closed down 1%.Lastly, Accent Group (ASX:AX1) lowered its earnings before interest and taxes (EBIT) guidance for the second half of fiscal year 2026 after higher fuel prices and deteriorating consumer confidence negatively impacted sales and margins in April. The company now expects fiscal second-half EBIT of AU$23 million to AU$28 million. In February, Accent Group guided for fiscal second-half EBIT of AU$30 million to AU$35 million. Its shares fell 13% on market close.

Australian State Economies to Diverge as National Growth Slows Down Into 2027, Westpac Says

Australian states' economic performances are poised to diverge as national growth slows down through 2026 and into 2027, Westpac said in a Monday report.The mining-based states of Queensland and Western Australia are once again expected to lead other regions as higher energy prices help drive sizeable income windfalls, which should provide a cushion for households against tighter financial conditions and help keep overall activity relatively resilient.The bank expects gross state product (GSP) growth in Queensland to slow to a year‑average pace of 1.8% in 2027 from 2.6% in 2026, accelerating to around 2% in 2028, with Olympics‑related infrastructure spending reinforcing momentum, the bank said.Like Queensland, higher dwelling prices are anticipated to support near-term demand through wealth effects in Western Australia, where Westpac expects GSP growth to moderate to 1.8% in 2027 from around 2.4% in 2026 before picking up to 2.4% in 2028.South Australia is also relatively well-positioned, given strength in both public and private activity, the bank said.However, the consumption-led states of New South Wales and Victoria are expected to underperform, with Victoria being the only state where consumption per capita is anticipated to fall below 2019 levels by 2028, Westpac said.The bank expects New South Wales' GSP growth to slow to just 0.8% in 2027 from around 1.9%, and forecasts Victoria's growth to reach 0.7% in 2027 from around 2% in 2026."While rate cuts in 2028 should eventually stabilize conditions, the longer the global shock persists, the deeper and more uneven the adjustment across states is likely to be," Westpac said.

'Inevitable Market Reckoning' Coming for Oil Supply Through Either Higher Prices or Product Shortages, ANZ Research Says

Several factors are shielding oil prices from the extensive supply disruptions caused by the Middle East conflict; however, an "inevitable market reckoning" is coming, through higher prices or product shortages, according to a Monday report by ANZ Research.In physical markets, there have been few signs of an oil supply crisis, particularly in the US, where commercial crude oil stocks stand at 456,000 barrels in the week ending April 24, which is 24,000 barrels higher than at the same period a year ago.High inventory levels in Asia have also helped buffer supply losses, with China's crude oil reserves estimated to be around 1.7 billion barrels. This has been aided by demand rationing and strategic reserve releases.Overall, oil production from the Persian Gulf fell by 10.7 million barrels per day over the February-March period. Over 15 million barrels per day are being held off the market, and cumulative losses are approaching 1 billion barrels. Global crude oil inventories fell by nearly 200 million barrels in April, and the June quarter will see the largest quarterly crude inventory drawdown in history at 6.5 million barrels per day.The bank's global oil market balance shows a deficit of 1.6 million barrels per day for 2026, which assumes rising supply and weak demand in the December quarter. Its outlook for supply is based on a gradual recovery starting in June and progressing through to the end of the year. Under this scenario, damage to supply will linger, with the recovery in Persian Gulf supply being asymmetric.If the supply crunch starts to ease in the second half of the year, both in terms of flows through the strait and the restart of upstream production, the ongoing threat of a sudden closure of the strait would keep a geopolitical risk premium embedded in prices, which would keep Brent crude oil above $90 per barrel for the remainder of the year and elevated prices would remain a feature of the oil market into 2027.If the conflict persists and supplies remain disrupted, prices would likely surge towards $200 per barrel. If the US and Iran reach a peace deal, and the Strait of Hormuz is reopened, Brent crude could fall to around $83 per barrel to $87 per barrel.

Australian Capital City Housing Prices Post Softest Monthly Rise Since January 2025, ANZ Research Says

Australia's housing market continued to slow in April as capital city housing prices inched 0.2% higher to register their weakest monthly result since January 2025, ANZ Research said in a Monday report.All capital cities posted softer month-over-month results, with higher rates and worsening sentiment notably flowing through to the Sydney and Melbourne markets, where housing prices declined 0.6% in April."More expensive properties in Sydney and Melbourne fell 1.2% [month over month] in April and have declined for six consecutive months," the firm said.Prices in Adelaide, Brisbane, Darwin and Perth all increased by over 1% in April, while those in Canberra and Hobart were relatively flat, according to the report.Building approvals slid roughly 11% in March after a marked rise in February, and ANZ Research said it expects approvals to decelerate further going forward as elevated materials costs exacerbate broader feasibility concerns for the sector.

ANZ-Indeed Australian Job Ads Fall in April

The ANZ-Indeed Australian job ads fell 0.8% month on month in April to a seasonally adjusted 113.3, following a revised 3.2% decrease to 114.2 in March, ANZ reported Monday.ANZ economist Aaron Luk noted that the unemployment rate held steady at 4.3% in March, suggesting labor market conditions remain "tight" but are not as strong as earlier in the year when unemployment fell to 4.1%, likely prompting the Reserve Bank of Australia to soften its recent assessment.Labor market conditions are expected to soften in the coming months as higher interest rates and rising global uncertainty reduce demand for workers, with the unemployment rate forecast to average 4.5% by the final quarter of the year, Luk added.Indeed senior economist Callam Pickering said that the decline in the job market in April was driven by sharp drops in food preparation, education, installation and maintenance, and retail roles, while the tech sector remained strong despite concerns about the adoption of artificial intelligence.Regionally, weaker demand in New South Wales and Victoria dragged down the national total, while South Australia saw gains and Western Australia continued to show the strongest labor demand over the past year, Pickering added.Compared with the year-earlier period, job ads fell 1.4% in April, per the report.

Total Number of Dwelling Approvals in Australia Falls in March

Seasonally adjusted data revealed that the total number of dwellings approved in Australia fell around 11% to 17,300 in March from 19,339 in the previous month, figures from the Australian Bureau of Statistics showed on Monday.Private sector housing approvals inched up 0.9% to 10,194 in March, while approvals for private sector dwellings excluding houses fell 26% to 6,632, according to the ABS data.Meanwhile, the value of total non-residential building approvals fell around 25% to AU$5.97 billion, and the value of total residential building approvals fell nearly 16% to AU$10.77 billion.

ASX Midday Sector Update: Information Technology Stocks Advance, Energy Falls

Information technology stocks advanced nearly 1% in midday trading on Monday, as markets weighed continued tensions in the Middle East and a potential rate hike from the Reserve Bank of Australia on Tuesday.Xero (ASX:XRO) rose 2%, and Life360 (ASX:360) jumped 7%.On the flip side, energy stocks declined more than 2% after President Donald Trump said the US will start helping some ships pass through the Strait of Hormuz starting Monday.Woodside Energy Group (ASX:WDS) shed 3%, and Santos (ASX:STO) declined 2%.

Melbourne Institute's Monthly Inflation Gauge Rises in April

The Melbourne Institute said its monthly inflation gauge recorded another increase in April, mainly driven by higher recreation-related prices, largely due to rising airfares, the Institute said in a Monday report.The monthly cost of living also increased in April, especially for employees and self-funded retirees.Annual headline inflation stood at 4.3%, the report said.The gauge estimates month-to-month price movements for a wide-ranging basket of goods and services across the main capital cities of Australia.