Aust shares close at record high after inflation data

The Australian share market has rallied to close at an all-time high after cooler-than-expected inflation data raised the chances of quicker rate cuts.

The benchmark S&P/ASX200 index on Wednesday finished up 80.5 points, or 1.06 per cent, to 7,680.7, smashing through its previous all-time record high of 7,632.8 set back on August 13, 2021.

The broader All Ordinaries gained 77.8 points, or 0.99 per cent, to a similar record close of 7,912.8.

"Long live the #BullMarket!" tweeted Market Index analyst Carl Capolingua, adding a bull emoji.

The ASX200 finished January up 1.2 per cent from where it started, its third straight month of gains.

The index previously came close to breaking through the all-time high on January 2 and on Tuesday but fell short.

On Wednesday morning the ASX200 had been down by as many as 30 points in the first hour of trading, but shot up after the release of official inflation data shortly before lunchtime.

The Australian Bureau of Statistics reported that consumer prices rose 0.6 per cent in the the December quarter, the smallest quarterly rise since March 2021.

The annual inflation rate was 4.1 per cent, under expectations of a 4.3 per cent readout and down from the 5.4 per cent recorded for the previous quarter.

"This is good for consumers, good for most businesses and good for equity markets," said Rob Talevski, Webull's Australia CEO.

""It is not surprising to see the ASX200 rally immediately."

The Australian dollar was buying 65.75 US cents, from 66.16 US cents at Tuesday's ASX close.

Austrlaian Associated PressBack to Breaking News

  • Print this page
  • Copy Link