ASX down 0.1pct at noon in choppy trading

The Australian share market has been somewhat volatile this morning as traders digested the impact of inflation data that was broadly in line with expectations.

At noon on Wednesday the benchmark S&P/ASX200 index was down 6.3 points to 6801, a 0.09 per cent dip.

The index had been as low as 6780, down 0.4 per cent from Tuesday, but jumped 24 points in three minutes following the 11.30am data release.

The broader All Ordinaries at noon was down 11 points, or 0.16 per cent, to 7014.2.

There had been fears the inflation data would show consumer prices rose even further in the second quarter, increasing the chances of a super-sized rate hike from the Reserve Bank on August 2.

Alex Joiner, chief economist with IFM Investors, tweeted that while the CPI data were "strong numbers", they didn't seem to justify a 75 basis point rate hike from the RBA next week.

Sean Langcake, head of macroeconomic forecasting for BIS Oxford Economics, agreed.

"We don't think these data will change the RBA's course, and still expect a 50 basis point increase at the August meeting," he wrote in a note.

The ASX's 11 official sectors were mixed at midday with five gaining, five losing and consumer discretionary shares collectively flat.

Mining was the worst performer, dropping 1.5 per cent as BHP and Rio Tinto both fell 1.8 per cent to $37.59 and $97.20 respectively.

Goldminers Silver Lake Resources and St Barbara both gained ground on fourth-quarter updates, rising 2.2 and 4.3 per cent respectively.

But nickel-lithium miner IGO was down 3.8 per cent on its own update.

The big banks were all up with CBA the best performer, climbing 1.5 per cent to $98.19.

Healthcare was the best-performing sector, boosted by CSL which was up 2.0 per cent to $292.36.

The Aussie dollar dropped from 69.50 US cents to 69.25 US cents in the minutes after the inflation data came in.

Austrlaian Associated PressBack to Breaking News

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