Australia: Shares slide as US inflation data fuels slowdown woes

AUSTRALIAN shares slipped on Thursday, in line with global markets, after US data showed higher-than-expected core inflation, fuelling worries about aggressive rate hikes and the prospect of an economic slowdown. The S&P/ASX 200 index was down 0.8 per cent at 7,008.30, as of 0043 GMT. The benchmark closed 0.2 per cent higher on Wednesday. US inflation data did little to ease investor worries over the outlook for interest rates and the economy. The monthly consumer price index data suggested inflation may have peaked in April but is likely to stay strong enough. In Asia, Japan’s Nikkei slumped 1.32 per cent and S&P 500 E-minis futures edged up 0.31 per cent. In Australia, financial stocks slipped 0.5 per cent to mark their sixth consecutive loss. The country’s biggest bank Commonwealth Bank of Australia fell 0.7 per cent despite beating an estimate for third-quarter cash earnings. The remaining three of the “Big Four” banks fell between 0.1 per cent and 1 per cent. Technology stocks dived as much as 7.4 per cent to their lowest in two years after tracking a sharp overnight fall in the tech-heavy Nasdaq index. They were the top percentage losers in the benchmark. ASX-listed shares of Block Inc and Xero fell 15.7 per cent and 8 per cent, respectively. Domestic gold stocks fell 1.1 per cent even as bullion prices bounced back. Healthcare stocks fell 1.8 per cent with heavyweight CSL losing 2.2 per cent after the company said regulatory process for completion of Vifor Pharma acquisition would get delayed beyond June. Energy stocks rose 0.6 per cent as crude prices advanced after Russia sanctioned some European gas companies, adding to uncertainty in global oil markets. Viva Energy rose 4.5 per cent and was among the top gainers in the benchmark index after the oil refiner posted a 65 per cent jump in operating earnings for the first four months of the year. Miners edged up 0.1 per cent on strong iron ore prices. New Zealand’s benchmark S&P/NZX 50 index fell 0.5 per cent to 11,180.71. REUTERS