SYDNEY — The S&P/ASX 200 Index edged lower in afternoon trading Thursday, May 14, 2026, closing in on modest losses as investors adopted a wait-and-see approach ahead of the federal budget and digested mixed signals from global markets amid persistent Middle East tensions and domestic economic uncertainties.

By 3:01 p.m. AEST, the benchmark stood at 8,613.4, down 17.0 points or 0.20%. The session followed a subdued performance the previous day, with the index hovering in a tight range as traders balanced optimism around commodity prices against caution over potential policy shifts in Tuesday's budget.

Financials and consumer discretionary stocks weighed on the market, while resources provided some support on firmer iron ore and copper prices. Major banks traded mixed after recent earnings, with Commonwealth Bank continuing to face pressure from its quarterly update and speculation around negative gearing changes in the upcoming budget.

The Australian dollar held steady near recent levels against the U.S. dollar as traders weighed the likelihood of further Reserve Bank of Australia rate cuts later in the year. Stronger-than-expected U.S. inflation data earlier in the week has tempered global rate cut expectations, indirectly influencing local sentiment.

Market watchers pointed to several factors........

© International Business Times