Australian Budget to Support Debt, Hit Consumer Stocks: Analysts

Australian bonds may find longer-term support after an initial selloff, while consumer-linked shares may come under pressure following tax changes unveiled in the fiscal 2027 budget, analysts said.

The nation’s debt market may become more attractive to foreign investment as the tax measures place government finances on a firmer footing and reinforce the nation’s AAA credit rating, Commonwealth Bank of Australia said in a note. Elsewhere, Citigroup Inc. said the budget does little to ease inflationary pressures from a fiscal stance, leaving the door open for further tightening by the central bank.