Australian Shares Decline Amid Mixed Inflation Signals
Global Markets | Australian shares end lower; softer-than-expected core inflation limits slide
The Economic TimesImage: The Economic Times
Australian shares closed at a near four-week low, with the S&P/ASX 200 index down 0.3% at 8,687.00. Softer-than-expected core inflation data reduced expectations for a May rate hike, despite ongoing concerns about underlying inflation trends.
- 01S&P/ASX 200 index closed at 8,687.00, its lowest since April 2.
- 02The index has lost nearly 3% over seven consecutive sessions.
- 03Core inflation data was softer than anticipated, reducing May rate hike odds.
- 04Energy stocks gained, with Woodside Energy reporting better-than-expected revenue.
- 05Financials and miners faced declines, while real estate and consumer discretionary sectors saw slight gains.
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Australian shares ended lower on Wednesday, with the S&P/ASX 200 index closing at 8,687.00, marking a nearly four-week low. This decline of 0.3% reflects a total drop of nearly 3% over the past seven sessions, the longest losing streak since mid-June 2022. Core inflation data released indicated a softer-than-expected measure, which eased expectations for a May rate hike from 86% to 71%. Despite this, underlying inflationary trends remain a concern, particularly with rising energy costs impacting the consumer price index. Kai Chen, director at MPC Markets, noted that while the market may be primed for a rebound, the real effects of inflation from ongoing geopolitical tensions will not be fully visible until the second quarter. In sector performances, miners closed 0.4% lower, and financials fell by 0.6%, while energy stocks gained 1.3%, buoyed by Woodside Energy's positive revenue report.
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The decline in shares and mixed inflation signals may affect investor confidence and household incomes, potentially leading to tighter financial conditions for everyday Australians.
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