Australian Shares Decline; Commonwealth Bank of Australia Reports Higher Fiscal Q3 Cash Net Profit After Tax
Australian shares declined on Wednesday as the risk increased that the US Federal Reserve would be forced to raise rates earlier than expected after inflation data came in hotter than expected.The S&P/ASX 200 Index fell 0.46%, or 40.30 points, to close at 8,630.40, setting another 20-day low.The US consumer price index rose 3.8% in the 12 months through April, the biggest year-over-year increase since May 2023. Brent crude oil futures were trading around $107 per barrel as talks between the US and Iran remained deadlocked.On the domestic front, the Australian budget for fiscal year 2026 to fiscal year 2027 comprises significant policy changes, including capital gains taxation, negative gearing, and the taxation of trusts, all of which are expected to improve the fiscal position in the long term, ANZ Research said.Australia's seasonally adjusted wage price index rose 0.8% in the March quarter, unchanged from the December 2025 quarter, data from the Australian Bureau of Statistics showed.The number of total loan commitments for dwellings in Australia fell 6.2% to 139,794 between the March and December 2025 quarters, data from the Australian Bureau of Statistics showed. New home loans declined 6.9% to 82,453, with their total value falling 4.3% to AU$61.42 billion.In company news, Commonwealth Bank of Australia (ASX:CBA) reported a cash net profit after tax of around AU$2.7 billion for the fiscal third quarter, up 4% from a year earlier. The bank reported a loan impairment expense of AU$316 million, and raised the forward-looking component of collective provisions by AU$200 million during the quarter. Its shares fell 10% on market close.Temple & Webster Group (ASX:TPW) implemented a margin optimization program in response to declining consumer confidence and expects the move to boost profitability starting from the fourth quarter of fiscal 2026. Following the initiative, the company's April earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to around AU$2.5 million to mark "the most profitable April" in its history. Its shares closed down 5%.Lastly, Aristocrat Leisure (ASX:ALL) reported fiscal first-half adjusted earnings of AU$1.29 per share, up from AU$1.163 a year earlier. Revenue for the six months ended March 31 was AU$3.03 billion, unchanged from a year earlier. Its shares were up over 13% on market close.