ASX 200: Inflation data dents ASX rise; Medibank dives; retailers down on household budget strain

The local sharemarket has retreated from six-week highs on rising inflation to close slightly higher. Medibank shares were hammered after it flagged a cybercrime hit of up to $35m. Coles, Woolworths down on household budget strain. Superloop founder's $15m selldown. 

Equity investor sentiment will be influenced by budget measures, inflation numbers and global and local corporate updates. Picture: Gaye Gerard

Welcome to the Trading Day blog for Wednesday, October 26. The ASX 200 index retreated from six-week highs on rising inflation. Medibank shares hammered after it flagged a cybercrime hit of up to $35m. Coles, Woolworths down on household budget strain. 

The S&P/ASX 200 closed 0.2 per cent higher at 6810.9. It had hit a six-week high of 6843.2 earlier.

On Wall Street, the S&P 500 gained 1.6 per cent, the technology-focused Nasdaq Composite Index lifted 2.3 per cent and the Dow Jones Industrial Average closed more than 1 per cent higher after mixed earnings updates from GM, Coca-Cola and GE.

US 10-year bond yields fell to 4.09 per cent and the two year yield edged lower to 4.47 per cent on expectations the US Federal Reserve will hike rates by another 75 basis points next week before a smaller increase in December.

Oil prices are higher with the global benchmark Brent crude up 0.3 per cent to $US93.52 per barrel and the US Nymex crude 0.9 per cent stronger at $US85.32 per barrel.

The gold futures price rose 0.2 per cent to $US1658 an ounce and iron ore futures were also up by as much to $US94.61 per tonne.