ASX drops 1.3%: Inflation unexpectedly rises in April

Market Reports

by Peter Milios

Australian shares slumped to a three-week low as the pace of inflation unexpectedly rose in April, diminishing investor expectations for an interest rate cut by the Reserve Bank this year. The benchmark S&P/ASX 200 dropped 1.3 per cent to 7665.6, with all 11 sectors declining, mirroring losses in consumer staples and industrials, leaving the index poised to finish May where it began, while the All Ordinaries also fell 1.2 per cent in response to the April consumer price indicator accelerating to 3.6 per cent year-on-year.


The Dow Jones futures are pointing to a fall of 159 points.

The S&P 500 futures are pointing to a fall of 23.25 points.

The Nasdaq futures are pointing to a fall of 77.75 points.

The SPI futures are down 104 points.

Best and worst performers

All sectors are in the red. The sector with the fewest losses was Information Technology, down 0.47 per cent. The worst-performing sector was Consumer Staples, down 2.08 per cent.

The best-performing large cap was Fisher & Paykel Healthcare Corporation (ASX:FPH), closing 3.69 per cent higher at $26.39. It was followed by shares in Alumina (ASX:AWC) and Meridian Energy (ASX:MEZ).

The worst-performing large cap was Treasury Wine Estates (ASX:TWE), closing 4.48 per cent lower at $11.10. It was followed by shares in The a2 Milk Company (ASX:A2M) and Fortescue (ASX:FMG).

Asian markets

Japan's Nikkei has lost 0.77 per cent.

Hong Kong's Hang Seng has lost 1.99 per cent.

China's Shanghai Composite has gained 0.59 per cent.

Commodities and the dollar

Gold is trading at US$2,353.80 an ounce.

Iron ore is 1 per cent lower at US$117.85 a tonne.

Iron ore futures are pointing to a 0.7 per cent fall.

Light crude is trading $0.25 higher at US$80.08 a barrel.

One Australian dollar is buying 66.55 US cents.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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