Updated · The Australian Financial Review · Jul 29
ASX 200 Climbs 1% to 9,038 as June CPI Cuts August Rate-Hike Odds to 3%
Updated
Updated · The Australian Financial Review · Jul 29
ASX 200 Climbs 1% to 9,038 as June CPI Cuts August Rate-Hike Odds to 3%
2 articles · Updated · The Australian Financial Review · Jul 29
Summary
90.80 points lifted the S&P/ASX 200 to 9,038.60, its highest close in five months, after softer June-quarter inflation sharply reduced expectations of an RBA rate rise next month.
3.8% headline CPI came in below the 4% forecast while trimmed mean held at 3.6%, pushing market-implied odds of an August hike down to 3% from 21% before the data.
Rate-sensitive assets reacted quickly: the Australian dollar slipped 0.3% to US69.59 cents and the three-year bond yield fell to 4.5%, while consumer shares including JB Hi-Fi and Eagers Automotive jumped.
CSL surged 7.2% after outlining trial work for its Horizon 2 manufacturing process, while Rio Tinto rose 3.7% on a 43% jump in half-year underlying earnings to $US6.85 billion.
Brent crude added 3.6% to $US87.08 as Middle East fighting resumed, supporting energy shares and helping offset regional pressure from a 6.4% slide in South Korea's Kospi.