ASX 200 Closes Flat After Hotter-Than-Expected Inflation
Australia’s ASX 200 ended little changed at 8,847 on Wednesday, as gains in non-energy minerals, consumer durables, and tech stocks were largely offset by losses in energy minerals, utilities, and logistics. The benchmark index reversed early gains after hotter-than-estimated inflation strengthened bets on a near-term Reserve Bank rate hike at the next meeting. Annual headline inflation notched a six-month high of 4.3% in September, moving further above the RBA’s 2—3% target. Governor Bullock also delivered hawkish remarks before lawmakers, warning that inflation would likely remain elevated longer than the August projection. In the U.S., stock futures were mixed ahead of the Fed's rate decision later today. The big four banks pared early gains, up 0.3%—1%. Lynas Rare Earths jumped 7.3% after a recent low, while Sandfire Resources rose 4.8% and PLS Group gained 3.8%. On the downside, Reece plunged 8.8%, followed by Ampol (-3.8%), Yancoal Australia (-3.7%), and Whitehaven Coal (-2.4%).
Australia’s ASX 200 ended little changed at 8,847 on Wednesday, as gains in non-energy minerals, consumer durables, and tech stocks were largely offset by losses in energy minerals, utilities, and logistics. The benchmark index reversed early gains after hotter-than-estimated inflation strengthened bets on a near-term Reserve Bank rate hike at the next meeting. Annual headline inflation notched a six-month high of 4.3% in September, moving further above the RBA’s 2—3% target. Governor Bullock also delivered hawkish remarks before lawmakers, warning that inflation would likely remain elevated longer than the August projection.
In the U.S., stock futures were mixed ahead of the Fed's rate decision later today. The big four banks pared early gains, up 0.3%—1%. Lynas Rare Earths jumped 7.3% after a recent low, while Sandfire Resources rose 4.8% and PLS Group gained 3.8%. On the downside, Reece plunged 8.8%, followed by Ampol (-3.8%), Yancoal Australia (-3.7%), and Whitehaven Coal (-2.4%).