The ASX200 index dipped by 0.3 per cent or 23.4 points to close at 7,759.6 points, while the broader All Ordinaries index decreased by 20.1 points or 0.25 per cent, finishing at 8,002.8 points.
Among sectors, property emerged as the worst performer, with a 2.3 per cent drop. Interest-rate-sensitive financials also faced losses, trickling down to a 0.5 per cent fall at closing.
Leading the decliners were Judo Capital Holdings Ltd and GPT Group, end-of-day figures revealing drops of 6.72 per cent and 5.87 per cent respectively. This reaction underscores investors' anxiety regarding more possible interest rate hikes by the Reserve Bank of Australia (RBA).
IG analyst Tony Sycamore noted that the market has not yet fully absorbed Wednesday’s CPI shock, where inflation surged from 3.6 per cent to 4 per cent for the year ending in May.
"Yesterday’s high inflation numbers have kept the local market unsettled for another day," Mr. Sycamore remarked.
"The RBA's continuous apprehension over inflation, highlighted in mid-June when the Board discussed rate hikes and dismissed cuts, has been a design for market caution."
He added, "The RBA’s reiterated commitment to 'do what is necessary' to curb inflation back to target levels sounded notably more hawkish."
Additionally, the RBA's preferred inflation gauge, the Trimmed Mean CPI, rose to 4.4 per cent in May, beyond their anticipated 3.8 per cent forecast. This escalates the probability of a fourteenth rate hike to 4.60 per cent before year-end, barring an unforeseen sharp decline in June inflation data.
Peter Munckton, chief economist at Bank of Queensland, concurred, arguing that the CPI release would attract intense scrutiny.
"Weak real household disposable income is primarily driven by elevated inflation and the related higher interest rates," Mr. Munckton said.
"The May CPI outcome, leading a second poor monthly inflation figure in a row, demonstrates that the quarterly CPI figures, while more comprehensive, might align with the negative monthly trend."
He added, "Consequently, a consistent trend in the June quarter's CPI may compel the RBA to hike rates in their upcoming August meeting, making a rate move a toss-up at this stage."
The Aussie dollar traded at 66.8 US cents at 4:15 PM.
The source of the original article provided insights on ASX dynamics amidst the inflation-driven turmoil (NewsWire, June 27, 2024).
Published:Friday, 28th Jun 2024
Source: Paige Estritori
![]() | Inflation's Tug of War: Implications for Rate Hikes in August 29 Jun 2024: Paige Estritori With inflation persistently on the rise, Australian homeowners brace for potential interest rate hikes as early as August. New data from the Australian Bureau of Statistics indicates that inflation remained at a worrisome 4% annually by May 2024, causing increasing concern among economists and the general public alike. - read more |
![]() | Suncorp's Strategic Pivot: Into Insurer-Only Focus 29 Jun 2024: Paige Estritori Suncorp is preparing for a major strategic shift following the approval of its banking business sale to ANZ by Federal Treasurer Jim Chalmers. This $4.9 billion deal marks Suncorp’s exit from banking and enables it to concentrate solely on its insurance pursuits. - read more |
![]() | Australia Gears Up to Tackle Tough Inflation Terrain 28 Jun 2024: Paige Estritori The path to bringing Australian inflation to the desired level is proving to be a challenging feat, according to Treasurer Jim Chalmers. - read more |
![]() | ASX Slides as Inflation Jitters Persist 28 Jun 2024: Paige Estritori The Australian stock market experienced a minor hiccup on Thursday, reflecting investor jitters following this week’s surprising consumer price index (CPI) report. - read more |
![]() | Westpac Criticized for Inadequate Customer Support Post-Branch Closure 27 Jun 2024: Paige Estritori The Banking Code Compliance Committee (BCCC) has recently highlighted significant shortcomings in Westpac's handling of its regional branch closure in Tennant Creek, citing serious non-compliance with the 2019 Banking Code of Practice. - read more |
![]() | Australia's Energy Costs Set to Surge: A New Look at AEMO's Roadmap 27 Jun 2024: Paige Estritori Australia is on the cusp of facing some of the world's highest energy prices as detailed in the latest roadmap from the Australian Energy Market Operator (AEMO). This plan, designed to facilitate the country's energy transition, reveals significant challenges and potential pitfalls ahead. - read more |
![]() | ASIC Enforces Notification Rules for Advisers Using Experience Pathway 27 Jun 2024: Paige Estritori The Australian Securities and Investments Commission (ASIC) has reiterated the importance for Australian Financial Services Licensees (AFSLs) to comply with new notification requirements regarding the experience pathway for financial advisers. - read more |
![]() | Government Reforms Spike Financial Advice Costs 27 Jun 2024: Paige Estritori As the government remains slow on regulatory reforms, the financial advice sector is bracing itself for yet another cost hike, contrary to the administration's promises of reducing expenses. According to the Financial Advice Association of Australia (FAAA), a combination of factors such as new regulatory cost recoveries, the end of Reduced Input Tax Credit (RITC) for super advice, and delayed legislative actions are to blame. - read more |
![]() | Consumer Confidence Remains Low Amid Inflation Worries 26 Jun 2024: Paige Estritori Despite a modest uplift in June, Australian consumer confidence remains historically low as fears persist about inflation potentially driving the Reserve Bank to increase interest rates further. - read more |
![]() | Rising Costs Challenge Australian Savings: New Survey Insights 25 Jun 2024: Paige Estritori The ongoing cost of living crisis is increasingly squeezing the wallets of Australians, with a fresh survey from Compare the Market offering new insights into just how precarious personal finances are for many. - read more |
![]() | Understanding Your Credit Footprint: Borrowing Strategies to Keep Your Score Intact Understanding the mechanics behind credit scores is pivotal for anyone navigating the intricate world of finance. A strong credit score does not only unlock the gates to a plethora of borrowing options but also secures favorable interest rates, which can save you a substantial amount of money over time. It acts as a financial passport, one that enables you to achieve milestones such as purchasing a home or car with ease. - read more
|
![]() | Understanding Soft Credit Checks: Safeguard Your Score During Loan Comparison When embarking on the journey to secure financing, particularly for significant purchases such as a car, your credit score takes center stage in the eyes of lenders. A credit score is a numerical representation of your creditworthiness, derived from your financial history and behaviors. It wields substantial influence on your ability to acquire loans with favorable terms. - read more
|
![]() | How to Use Loan Comparison Tools Effectively - A Guide for the Credit-Conscious When it comes to securing a loan, the terms you agree to can have a lasting impact on your financial wellness. It's crucial to strike a balance between finding a loan that fits your needs and maintaining a healthy credit score. This delicate equilibrium is where loan comparison tools come into play, serving as navigational aids in the vast sea of credit options. - read more
|
![]() | Budgeting Basics to Keep Your Credit Score Healthy While Seeking a Loan Understanding the nuances of financial health is a crucial component in the journey of loan acquisition. It is the bedrock on which potential borrowers build their case for credibility and reliability. Among the myriad of factors influencing your fiscal stability, credit scores stand out as a beacon indicating your creditworthiness to lenders. A robust credit score simplifies the path to securing loans, garnering favorable interest rates, and negotiating better terms. - read more
|
![]() | Choosing the Right Loan for Your Personal Needs in Australia Choosing the right loan can be a pivotal decision in your personal financial journey. In Australia, where a diverse range of loan options is available, selecting the loan that aligns perfectly with your needs is more crucial than ever. A judicious choice can help you fulfill your dreams—be it buying a new home, investing in education, or consolidating debt—while ensuring that the repayments remain manageable and do not lead to financial strain. - read more
|
![]() | Loan Hunting with Confidence: How to Check Options Without Credit Damage Embarking on the journey to secure a loan can feel like navigating a minefield with your credit score as the prize. It's no secret that your credit score is your financial fingerprint, impacting not just your loan prospects but also the terms you're offered. However, the act of loan hunting itself, if not done carefully, can take a toll on this crucial number. - read more
|
![]() | Savvy Spending: Innovative Budgeting Tips for Smooth Loan Repayments Managing personal finances judiciously becomes paramount when dealing with loans and their repayments. A potential obstacle many encounter is preserving or enhancing their credit score while simultaneously undertaking the necessary financial commitments of loan repayments. Understanding how to navigate this terrain is vital to financial health. - read more
|
![]() | Understanding Your Credit File: How to Seek Loans without Negative Impacts Understanding financial health is paramount when venturing into the realm of loan acquisition. It's the backbone that supports not just your immediate monetary requirements but ensures longevity in your fiscal stability. At the heart of this understanding lies a critical aspect: the credit score. It's a numerical representation of your financial trustworthiness, influenced by past fiscal decisions and behaviors. - read more
|
![]() | Default and Reposession Most people would assume that a default under a loan contract means that payments haven't been made but, as you are about to learn, there are other reasons why a lender may have the right to repossession. - read more
|
![]() | Handling Financial Situations As a Married, Unmarried Or Divorced Woman Whether you are in a committed relationship or are a happy single person, you should make it a top priority to understand your finances. This article will highlight some of the key points that you need to understand to take control of your finances and your financial goals. - read more
|
![]() |
How to Use Loan Comparison Tools Effectively - A Guide for the Credit-Conscious When it comes to securing a loan, the terms you agree to can have a lasting impact on your financial wellness. It's crucial to strike a balance between finding a loan that fits your needs and maintaining a healthy credit score. This delicate equilibrium is where loan comparison tools come into play, serving as navigational aids in the vast sea of credit options. - read more
|
![]() |
Understanding Your Credit File: How to Seek Loans without Negative Impacts Understanding financial health is paramount when venturing into the realm of loan acquisition. It's the backbone that supports not just your immediate monetary requirements but ensures longevity in your fiscal stability. At the heart of this understanding lies a critical aspect: the credit score. It's a numerical representation of your financial trustworthiness, influenced by past fiscal decisions and behaviors. - read more
|
![]() |
Understanding Soft Credit Checks: Safeguard Your Score During Loan Comparison When embarking on the journey to secure financing, particularly for significant purchases such as a car, your credit score takes center stage in the eyes of lenders. A credit score is a numerical representation of your creditworthiness, derived from your financial history and behaviors. It wields substantial influence on your ability to acquire loans with favorable terms. - read more
|
![]() |
Understanding Your Credit Footprint: Borrowing Strategies to Keep Your Score Intact Understanding the mechanics behind credit scores is pivotal for anyone navigating the intricate world of finance. A strong credit score does not only unlock the gates to a plethora of borrowing options but also secures favorable interest rates, which can save you a substantial amount of money over time. It acts as a financial passport, one that enables you to achieve milestones such as purchasing a home or car with ease. - read more
|
![]() |
Choosing the Right Loan for Your Personal Needs in Australia Choosing the right loan can be a pivotal decision in your personal financial journey. In Australia, where a diverse range of loan options is available, selecting the loan that aligns perfectly with your needs is more crucial than ever. A judicious choice can help you fulfill your dreams—be it buying a new home, investing in education, or consolidating debt—while ensuring that the repayments remain manageable and do not lead to financial strain. - read more
|
![]() |
Loan Hunting with Confidence: How to Check Options Without Credit Damage Embarking on the journey to secure a loan can feel like navigating a minefield with your credit score as the prize. It's no secret that your credit score is your financial fingerprint, impacting not just your loan prospects but also the terms you're offered. However, the act of loan hunting itself, if not done carefully, can take a toll on this crucial number. - read more
|