ASX 200 reverses early gains, closes lower after PCE jitters

The ASX 200 fell 37 points, or 0.4%, to end at 9,128 on Wednesday, reversing early gains and marking the first drop in three sessions.

Sentiment weakened as U.S. futures were mostly lower ahead of the PCE inflation report later today and Fed Chair Warsh’s Jackson Hole speech Friday.

Locally, July headline inflation in Australia rose above forecasts on fuel and travel costs, with core inflation also surprisingly higher, raising the risk of another rate hike.

Meanwhile, construction work fell 2.1% qoq in Q2, defying expectations for growth.

Tech, communications, and energy minerals drove the losses, though strength in non-energy minerals and retail trade capped the decline.

Lynas Rare Earths tumbled 3.9% after missing profit estimates, while two of the big four banks fell between 0.1% and 1.1%.

In contrast, Evolution Mining rose 0.4% on stronger gold prices.

Woolworths surged 3.7% after reporting a profit jump and signaling that shoppers will hunt bargains amid tighter household budgets.