The local share market is slightly lower this morning as traders digest some weaker-than-expected domestic economic data that could lessen the odds of more rate hikes.
At noon AEDT on Wednesday, the benchmark S&P/ASX200 index was down 7.9 points, or 0.1 per cent, to 7,250.5. The broader All Ordinaries was down 7.4 points, or 0.1 per cent, to 7,450.6.
The ASX200 had been down by as many as 42 points, or 0.5 per cent, but shot up 24 points in five minutes after the Australian Bureau of Statistics’ 11.30am data releases.
The ABS reported that Australia’s gross domestic product rose 0.5 per cent in the fourth quarter, and consumer prices rose 7.4 per cent in the year to January, down from 8.4 per cent in the 12 months to December. Both results were under what economists were expecting.
“Softer Jobs data, softer CPI, softer GDP, softer consumer spending….. RBA has every reason now to pause the hike cycle,” tweeted Heath Moss, equities advisor and founder of HLM Investments.
The Australian dollar plunged to a two-month low of 66.94 US cents on the news, although it had rebounded to 67.24 US cents an hour later, unchanged from Tuesday’s ASX close.
At lunchtime the energy and mining sectors were both up over one per cent. Consumer discretionary, staples and utilities were basically flat and every other sector was lower.
BHP and Rio Tinto were both up 1.7 per cent, to $45.98 and $118.78, respectively, while Fortescue Metals had added 1.5 per cent to $21.71.
The big banks were all quite a bit lower, with Westpac and NAB both down 1.8 per cent, to $22.13 and $29.47, respectively. ANZ was down 1.4 per cent to $24.30 and CBA had dropped 1.2 per cent to $99.50.
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