Australia: Shares slip ahead of inflation data, Fed decision

AUSTRALIAN shares inched lower on Wednesday as caution prevailed ahead of local inflation data and a US Federal Reserve policy statement.

The S&P/ASX 200 index had slipped 0.16 per cent by 0101 GMT after rising 0.07 per cent in early trade.

The benchmark rose 0.26 per cent on Tuesday.

Economists polled by Reuters see Australia’s year-on-year headline inflation hitting 6.3 per cent in the second quarter, the highest since 1990.

Meeting or beating it could support the Aussie by ramping up interest rate-hike expectations.

Investors are expecting a 75-basis-point Fed rate increase, with markets pricing about a 10 per cent risk of a larger hike. They are also waiting to see whether economic warning signs prompt a shift in rhetoric.

In Australia, gold stocks rose 2.3 per cent on the back of higher bullion prices and were among the top gainers on the benchmark.

Newcrest Mining, the country’s largest gold miner, climbed 1.6 per cent.

Technology stocks shed 0.67 per cent, leading losses on the benchmark after a weak Wall Street session overnight as downbeat US consumer confidence data fuelled fears about an economic slowdown.

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Australia: Energy, miners lift shares; Fed, inflation in focus

ASX-listed shares of Block Inc fell 3.8 per cent and were the top losers on the sub-index. Miners dropped 0.16 per cent even after iron ore futures touched two-week highs on Tuesday. BHP Group and Rio Tinto slipped 0.7 per cent and 0.8 per cent, respectively.

Energy stocks lost 0.11 per cent after oil prices settled lower overnight. Woodside Energy Group jumped 0.9 per cent, while Santos declined 0.1 per cent.

Financials slid 0.09 per cent, but the big four banks were up between 0.04 per cent and 0.72 per cent.

Among individual stocks, Westpac rose 0.33 per cent as it announced plans to reduce its lending to coal, oil and gas companies, and said it would entirely shift to renewable electricity for its own operations by 2025.

New Zealand’s benchmark S&P/NZX 50 index climbed 0.46 per cent to 11217.66. REUTERS