Australian shares fall as US inflation picks back up
Near midday on Wednesday, the benchmark S&P/ASX200 index was down 79.1 points to 8,551.2, a drop of 0.92 per cent, while the broader All Ordinaries had fallen 72.4 points, or 0.82 per cent, to 8,802.9.
Overnight the US Bureau of Labor Statistics reported that had ticked back up in June - particularly prices of goods most exposed to tariffs, such as household furnishings and appliances.
NAB head of FX research Ray Attrill said market pricing for Fed rate cuts was pared back after the consumer price index report, while bond yields and the US dollar rose.
"With risks still skewed to the upside for inflation, the Fed will likely remain on hold as it waits for more data," JP Morgan's economics team wrote in a client note.
The interest rate market's implied pricing for a Fed rate cut by September had dropped to 52.4 per cent, from 58.9 per cent a day earlier, according to CME FedWatch.
At midday 10 of the ASX's 11 sectors were lower, while technology had eked out a modest 0.2 per cent rise.
Mining was the biggest mover, dropping 1.3 per cent.
BHP was down 1.2 per cent, Fortescue had dropped 0.2 per cent and Rio Tinto had slipped 0.3 per cent as the mining giant announced its Pilbara iron ore shipments for the June quarter were at the lower end of guidance.
Goldminers were also in the red as the yellow metal traded for $US3,335 an ounce, about the same as Tuesday. Northern Star slid 2.1 per cent, Genesis Minerals dropped 4.6 per cent and Evolution was down 1.6 per cent as the goldminer forecast higher mining costs in 2025/26.
All of the big four banks were lower, with CBA down 1.1 per cent, Westpac dropping 0.9 per cent, NAB retreating 1.6 per cent and ANZ subtracting 0.7 per cent.
Infratil was up 4.1 per cent after S&P Dow Jones Indices announced that the New Zealand-based infrastructure investment company would be added the ASX200 next week, replacing Spartan Resources, which is being acquired by Ramelius Resources.
Droneshield was up 5.8 per cent, taking its gains for the week to 41.9 per cent after announcing Monday a ramp-up in production capacity.
Imugene had dropped 14.1 per cent after the cancer immunotherapy company announced a $37.5 million capital raising at a 22.4 per cent discount.
The money will be used to fund a clinical trial of Imugene's potential gene therapy treatment for an aggressive type of blood cancer.
The Australian dollar was trading for 65.19 US cents, from 65.55 US cents.
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