Australian sharemarket slips after inflation figures

The sharemarket gave back early gains to be slightly lower after the release of inflation numbers.

The sharemarket gave up early gains after inflation data.

The sharemarket gave back early gains to be slightly lower after the release of inflation numbers.

Inflation was 0.4 per cent in the June quarter, which according to some analysts missed market expectations of a 0.5 per cent rise, for an annual rate of 1.0 per cent, the weakest reading since 1999.

Investors anticipate the inflation numbers will boost the chances of Reserve Bank cutting the cash rate on August 2.

The benchmark S & P/ASX 200 index was up about 0.4 per cent in early trade, but in early afternoon trade was down 0.1 per cent.

At 12.03am (AEST), the benchmark S & P/ASX 200 index was down 5.9 points, or 0.11 per cent, at 5,531.6 points.

The broader All Ordinaries index was down 4.3 points, or 0.08 per cent, at 5,608.3 points.

Resources stocks were the best performers due to stronger iron ore prices, but the big banks were weaker.

Fortescue Metals had gained 28.5 cents, or 6.9 per cent, to $4.405 after it reported a rise in June quarter iron ore shipments and said it is seeking to make further cut costs in the current financial year.

ANZ was down 14 cents at $25.52 even as the High Court dismissed a long running class action by ANZ customers claiming the bank charged “excessive” credit card fees.

AAP