The Australian market dipped as investors sold down financial stocks, believing the the latest inflation numbers lessen the chance of another cut in official interest rates next month.
Here’s the scoreboard:
- S&P ASX 200: 5,837.50 -34.84 (-0.59%)
- All Ordinaries: 5,812.80 -31.23 (-0.53%)
- AUD/USD: 0.7765 +0.0055 (+0.71%)
In the US, the S&P 500 index closed down 0.2%.
On the local market, eight out of ten sectors were lower and almost wiped out Tuesday’s rise.
The banks led the market down today with Westpac weaker by 1.29% to $38.29, the ANZ 0.76% to $35.49, the NAB 1.22% to $38.11 and the Commonwealth 0.72% to $91.12. The Bank of Queensland was down 1.58% to $13.09.
The top stories Wednesday:
1. CPI. The chances of an RBA rate cut in May are almost 50-50 following today’s inflation data.
2. BHP ups full year production guidance by 2%. The big miner has cut the cost of producing a tonne of iron ore to $US20 and lifted its iron ore production by 16% to a record 188 million tonnes for the first nine months of the financial year. Its shares closed down 1% to $30.27.
3. Kiwi dollar parity with the Aussie is coming. While today’s inflation report has given the Australian dollar a boost, it’s unlikely to help when coming up against the NZ dollar.