ASX falls on latest inflation print

Australia’s sharemarket snapped a four day winning streak during Wednesday’s trading after monthly inflation data came in hotter than expected.

The Australian sharemarket fell from a three and a half month high on Wednesday as profit taking and an unflattering inflation read spooked investors during the afternoon’s trading.

The S&P/ASX200 closed lower on Wednesday, dropping 10.70 points or 0.13 per cent to 8,396.90.

Meanwhile, the broader All Ordinaries slipped 6.60 points or 0.08 per cent to 8,624.90.

The Australian dollar was also down 0.1 per cent over the trading day buying US64.35 cents.

On a mixed day for the market, six of the 11 sectors still finished in the green even though the overall ASX declined during Wednesday’s trading.

Six of the 11 sectors finished in the green. Picture: NewsWire / Jeremy Piper

Some of the intraday falls in the ASX200 came after the Australian Bureau of Statistics monthly CPI indicator came in at 2.4 per cent for the year until April, slightly beating expectations of 2.3 per cent.

The major banks shed earlier gains with Commonwealth Bank slumping 0.9 per cent to $173.79, Westpac slipped 0.98 per cent to $31.47, NAB down 1.09 per cent to $37.34 and ANZ shed 0.62 per cent to $28.88.

The two major supermarket chains also fell marginally, with Woolworths shares sliding 0.25 per cent to $31.73 and Coles slumping 0.40 per cent to $21.60.

BHP shares are trading in the red down 0.49 per cent to $38.45, Rio Tinto shares slid 0.94 per cent to $114.17 and Fortescue shares fell 0.19 per cent to $15.55.

VanEck senior portfolio manager Cameron McCormack said Wednesday’s read could threaten the pace of interest rate changes.

“We are also conscious that the cost savings on electricity from government rebates are starting to wear off, with prices inching up since last month,” he said.

The ASX snapped a four day winning streak on Wednesday. Picture: NewsWire / Max Mason-Hubers

“Higher power bills will impact businesses, with additional costs passed onto consumers.

“Domestic inflationary pressures could be exacerbated by global price increases as US tariffs start to make more of an impact on global supply chains and geopolitical conflicts threaten to increase the price of commodities and other goods in the near future.”

In company news shares in travel company Web Travel soared despite announcing earnings before interest, tax, depreciation and amortisation fell to $120m for the financial year, down from $139m.

But the company said bookings had urged 20 per cent, while travel spending was also up 22 per cent. The company also said it completed $150m in share buyback back program while still holding $63.6m in cash as of March.

Woodside gas shares jumped 3.22 per cent to $22.12 after it was announced the Albanese government would extend the life of its North West Shelf gas development until 2070.

Major rival Santos also rose 1.9 per cent to $6.55 throughout the trading day.

Fisher Paykel fell 4.8 per cent to $32.49 despite the company announcing a 43 per cent jump in full-year profits.

Goodman Group added 0.86 per cent to $32.96 on the back of reaffirming its market guidance.

Originally published as ASX falls on latest inflation print