Australian shares slide again as banks brace for federal budget and higher rates

Banks fell as investors priced in spending cuts and reforms

Australian shares fell for a third straight day as banks led the downturn. Investors turned cautious ahead of a federal budget expected to emphasize spending cuts and reforms. Sentiment was further pressured by the Reserve Bank of Australia’s recent rate hike aimed at tackling persistent inflation. Some sectors, including infrastructure and healthcare, held up better, but the broader market stayed nervous.