Hot inflation data has the sharemarket doubling its odds of a September rate hike, snapping a two-day win streak.<\/p>\n
The ASX 200 turned tepid shortly after inflation data was released, with seven of 11 sectors finishing in the red.<\/p>\n
Consumer staples had another strong day, but the ASX200 shed 36.8 points, down 0.4 per cent to 9127.8. The All Ords lost 0.39 per cent, while the tech index tanked two per cent.<\/p>\n
The inflation figures buoyed the Aussie dollar about 0.3 per cent against the greenback to US71.8 cents.<\/p>\n
After the inflation data was released, the ASX 200 quickly retreated from its flirtation with a record-high. <\/p>\n
Money markets doubled their bets to 33 per cent on a September hike, and a Melbourne Cup day hike is looking like a certainty.<\/p>\n
\u201cA hawkish repricing like the one seen today is quite literally kryptonite to an interest-rate sensitive index like the ASX200,\u201d IG analyst Tony Sycamore said.<\/p>\n
\u201cWhat makes it worse is that the next potential RBA rate hike is lining up for the same day and time as the \u2018race that stops the nation\u2019, the Melbourne Cup.\u201d<\/p>\n
KPMG chief economist Brendan Rynne said inflation alarm bells were ringing.<\/p>\n
\u201cThe breadth of the high inflation appears to be nearly all pervasive across the economy, with only one area being transport recording annual inflation less than the RBA\u2019s 2.5 per cent target rate,\u201d Dr Rynne said.<\/p>\n
\u201cToday\u2019s data supports the view that without policy action we may be in for a long, costly grind to get inflation under control and the Reserve Bank may have missed an opportunity at the last board meeting to get ahead of the game by raising rates.\u201d<\/p>\n
Tech stocks were pummeled under a costly grindstone on Wednesday \u2014 16 of the 20 largest firms finished in the red. <\/p>\n
Xero fell 5.7 per cent, Data#3 holders cashed out after a booming start to the week, Siteminder lost 8.5 per cent and athlete data firm Catapult Sports pinged a hammy and fell 4.7 per cent.<\/p>\n
But WiseTech saw the most value lost, with a 10.1 per cent plummet.<\/p>\n
EToro analyst Josh Gilbert said WiseTech\u2019s \u201cdecent\u201d financial results were \u201cnot strong enough to clear the regulatory cloud that has hung over the business for the last year\u201d.<\/p>\n
\u201cWiseTech is proving AI can take costs out of the business and become more efficient, but finding the next leg of growth is much harder,\u201d he said.<\/p>\n
Next year\u2019s revenue guidance implies \u201cearnings growth will come from efficiency rather than sales\u201d.<\/p>\n
\u201cThat is not what investors have come to expect from WiseTech, and shares falling today shows just how thin patience is wearing,\u201d Mr Gilbert said.<\/p>\n
The consumer discretionary index broke even Wednesday, but not for lack of trying from budget jewellery retailer Lovisa which rose 12.7 per cent. <\/p>\n
The business beat second-half profit expectations by about 32 per cent, as tighter cost controls and wider margins outweighed softer sales.<\/p>\n
At the other end of town, online luxury retailer Cettire blamed US tariffs and the ongoing Middle East war for its revenue slip and deepening net losses. <\/p>\n
But investors like the look of underlying earnings jumping from $300,000 to $17.1m year-on-year, sparking a 16.7 per cent rise on Wednesday.<\/p>\n","protected":false},"excerpt":{"rendered":"Hot inflation data has the sharemarket doubling its odds of a September rate hike, snapping a two-day 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