Updated · The Australian Financial Review · Sep 30
S&P/ASX 200 Jumps 0.9% as August CPI Misses 4.1% Forecast
Updated
Updated · The Australian Financial Review · Sep 30
S&P/ASX 200 Jumps 0.9% as August CPI Misses 4.1% Forecast
3 articles · Updated · The Australian Financial Review · Sep 30
Summary
The S&P/ASX 200 climbed 80 points to 8,789.3 on Wednesday, with 10 of 11 sectors advancing and real estate leading the gains.
August headline CPI rose 4.0% year on year, below the 4.1% expected, while monthly inflation slowed to 0.4% from 1.0%, easing fears of more aggressive RBA tightening.
Betashares said softer inflation, unemployment at 4.6% and the RBA's more dovish tone suggest market expectations for the peak cash rate may already have topped out.
The rally reflects how quickly Australian equities are responding to signs that the rate cycle could be nearing its ceiling after months of inflation-driven policy pressure.