The ASX Today: Oz inflation still surging, all but guaranteeing more rate hikes – and more red days

Welcome to HotCopper‘s The ASX Today, it’s Wednesday in Week 18, I’m Seja Al Zaidi. The ASX 200 has slipped again today, dropping around -0.1%, with weakness led by the big mining names.

Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.

The key driver for today’s market movement has been the major local inflation shock. Australia’s annual inflation rate has surged to 4.6% in the year to March. That’s the highest inflation reading in almost three years, largely driven by those enormous spikes we’ve seen in fuel costs.

According to the ABS, the U.S.-Israeli attacks on Iran have triggered a 32.8% increase in the price of fuel from the previous month.

There’s now renewed fears of further interest rate hikes, with markets increasingly pricing in another move from the Reserve Bank as early as next month ⁠— we’ll see how that pans out next Tuesday.

Despite the inflation spike, the Aussie dollar still edged slightly higher today, while bond markets remained relatively steady as investors assess whether this is a temporary shock or something a little more persistent.

Across our Aussie sectors, energy giants like AGL and Origin performed well thanks to higher oil and LNG prices. Also in the green, Woodside saw gains after reporting a 7% quarterly lift in revenue growth.

Mining stocks, however, dragged, weighing on the index overall – BHP was one of the biggest blue-chip drops there, down 1.5%.

And with a 2% overnight drop in gold spot prices came a sharp fall in the value of gold miners like Pantoro Gold and Westgold Resources, each of which dropped around -3% past lunchtime.

Overall, a softer session on the ASX today, with inflation back in focus, and rate hike expectations building once again.

That’s the ASX Today, have a wonderful evening. I’ll see you tomorrow.

Join the discussion: See what’s trending right now on HotCopper, Australia’s largest stock forum, and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.