Australian shares pare early gains after core inflation nudges up; RBNZ cuts rate
Australian shares pared some early gains on Wednesday after monthly inflation report showed that consumer prices rose above forecast in April, while New Zealand shares extended their fall as the country's central bank cut its cash rate.
The S&P/ASX 200 index was up 0.2% at 8420.5, as of 0239 GMT.
It ended 0.5% higher on Tuesday. Earlier in the session, the benchmark rose as much 0.5%, touching its strongest level since February 19.
Australian shares end little changed as miners fall offsets broader gain
The April consumer price index (CPI) data revealed that consumer prices rose 2.4% in April compared with a year ago, eclipsing a market estimate of 2.3%.
The trimmed mean measure of core inflation increased by an annual rate of 2.8% in April from 2.7% in March.
A rate cut from the central bank's next meeting in July is now priced at a 67% probability, with a total of 80 basis points in easing expected by early next year.
Financials gave up early gains to fall 0.1%, with three of the country's four largest banks trading in the red.
Miners lost 0.3% with sector giant BHP Group shedding 0.5%.
Local oil stocks advanced 1.7% on the back of higher oil prices. Sector heavyweights Woodside and Santos rose about 1.2% each.
Tracking overseas counterparts, technology stocks advanced 1.8% to a more than three-month high, and were set for a fourth consecutive session of gains, if the momentum sustained.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index extended its losses, down 1.8% at 12355.19, after the Reserve Bank of New Zealand, in a widely expected move, cut its rate by 25 bps, while flagging chances for further cuts in the future.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
26 minutes ago
- Business Recorder
US stocks tread water on economic growth worries
WASHINGTON: Wall Street stocks were little changed early Tuesday following a cut to global growth forecasts, with the United States expected to be hit hard as President Donald Trump's sweeping tariffs weigh on the economy. The Dow Jones Industrial Average was almost flat at 42,323.97, while the broad-based S&P 500 Index edged up 0.1 percent to 5,939.58. The Nasdaq Composite Index rose 0.2 percent to 19,279.52. The world economy is set to grow by 2.9 percent in 2025 and 2026, the Organisation for Economic Co-operation and Development (OECD) said Tuesday, cutting its forecasts from a previous report. Wall Street mixed after Trump's steel tariff threat The OECD also lowered its US growth forecast for this year, from 2.2 percent to 1.6 percent, and warned that 'substantial increases' in trade barriers are among the factors to impact growth if they persist. 'The general trend that is driving markets appears to be the creeping uncertainty over the path of tariffs and trade,' said Art Hogan of B. Riley Wealth Management. 'We're more or less in a 'wait-and-see' mode about what news is delivered to us,' he added. Since returning to the presidency, Trump has imposed 10 percent tariffs on imports from most trading partners and threatened steeper rates – currently on hold – on dozens of economies. He has slapped levies on imports of steel and aluminum, which he plans to double this week, straining ties with partners including the European Union. The market movements come as investors await more details of potential trade deals between Washington and governments around the world, as they seek to avert higher duties. Looking ahead, traders are also eyeing official employment data for a gauge of how the world's biggest economy is holding up under Trump's policies. 'We'll likely start seeing jobs creation numbers that are lower than the average,' said Hogan.
Business Recorder
3 hours ago
- Business Recorder
Oil edges up as geopolitical concerns and weaker dollar support
LONDON: Oil edged up on Tuesday, in the face of rising geopolitical tensions as the war in Ukraine ramped up despite peace talks in Turkey and Iran was set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer. Crude had gained nearly 3% on Monday after the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, kept its July output hike at 411,000 barrels per day, the same as earlier months and less than some in the market had feared. Brent crude futures gained 45 cents, or 0.7%, to $65.08 a barrel by 1154 GMT. U.S. West Texas Intermediate crude was up 31 cents, or 0.5%, to $62.83. 'Risk premia have filtered back into the oil price following deep Ukraine strikes on Russia over the weekend,' said analyst Harry Tchilinguirian of Onyx Capital Group. 'But more importantly for the barrel count, there is the to and fro between the U.S. and Iran regarding uranium enrichment.' Oil leaps 4% after OPEC+ keeps output increase unchanged Ukraine and Russia at the weekend ramped up the war with one of the biggest drone battles of their conflict, a Russian highway bridge blown up over a passenger train and an attack on nuclear-capable bombers deep in Siberia. Iran, meanwhile, was poised to reject a U.S. proposal to end a decades-old nuclear dispute, an Iranian diplomat said on Monday, saying it fails to address Tehran's interests or soften Washington's stance on uranium enrichment. If the nuclear talks fail, it could mean continued sanctions on Iran, which would limit Iranian supply and be supportive of oil prices. Further support came from the weak dollar. The dollar index held near six-week lows as investors weighed the outlook for U.S. President Donald Trump's tariff policy and its potential to hurt growth and stoke inflation. A weaker U.S. currency makes dollar-priced commodities such as oil less expensive for holders of other currencies. 'Crude oil prices continue to rise, supported by the weakening dollar,' said Priyanka Sachdeva, senior market analyst at Phillip Nova. Adding to supply worries, wildfires burning in Canada's province of Alberta have affected more than 344,000 barrels per day of oil sands production, or about 7% of the country's overall crude output, according to Reuters calculations. Further price support could come if forecasts of a drop in U.S. crude inventories are realised in the latest round of weekly supply reports.
Express Tribune
4 hours ago
- Express Tribune
PSX closes above 120,000 points for first time
Listen to article The Pakistan Stock Exchange (PSX) closed at a record high, with the KSE-100 index ending the day at 120,450.87, marking its first-ever close above 120,000 points. The market gained 1,573.07 points or 1.32%, reaching an intra-day high of 120,693.83 and a low of 119,129.51. Trading volume stood at 315,235,806 shares, with a total value of 20,897,236,653. The previous close was 118,877.80. Record-breaking bullish sentiment comes ahead of Pakistan's budget this month. Earlier on Monday, the KSE-100 index experienced significant volatility, with an intra-day high of 1,018 points and a low of 899 points, ultimately closing at 118,878, down by 813 points (0.68%). The decline was mainly attributed to concerns over proposed tax hikes on banking and saving schemes, additional petroleum levies, and rising inflation. The Consumer Price Index (CPI) increased by 3.5% year-on-year in May due to higher food prices, dampening market sentiment. Analysts, including Ahsan Mehanti of Arif Habib Corp, noted that the bearish market was driven by uncertainty ahead of the FY26 budget, geopolitical tensions, and fluctuations in the rupee. Topline Securities highlighted that selling pressure came from concerns about a potential 2-3% tax hike on passive income. While some stocks like Pakgen Power, National Foods, Meezan Bank, and National Bank of Pakistan supported the index, stocks like Systems Limited, Engro Holdings, and Pakistan Petroleum weighed it down. Trading volume decreased to 497.9 million shares from 580.3 million on the previous day. The market saw mixed performance, with 29 stocks rising, 71 falling, and 464 companies traded overall. Dewan Cement was the volume leader, while foreign investors sold shares worth Rs1.97 billion. Analysts are cautious, suggesting that the market may face continued pressure in the short term, but it could present a buying opportunity in certain sectors like cement, automobile, and fertilizers.
