End of Day Report – Wednesday 29 May: CPI Kills Rate Cut Hope | BHP Wants Extension
ASX 200 fell another 101 points to 7666 (-1.3%) in lacklustre trade compounded by nasty CPI number that put rate rises back on the cards. Banks were smacked down, with ANZ down 2.5% and the Big Bank Basket down to $20587 (-1.9%). MQG smashed 1.3% and insurers off with IAG in a class action down 3.1%. ASX fell 1.5%, with fund managers under pressure. REITs also feeling the pain, SGP off 1.5% and SCG down 2.5%. Industrials too under pressure, WES continuing to slide down another 1.1% with WOW and COL falling between 1.3-2%. Tech slipped, and retail down again. JBH off 1.5%, and ALL falling 3.0% despite a bullish report from Macquarie. In resources, crunch day for BHP with its Anglo bid in the UK. The stock held firm. FMG down 3.6%, and RIO sold down 1.5% as iron ore fell for the third day in Asia. Base metals mixed, lithium escaping the wrath and gold miners continued to buck the negativity. Oil and gas stocks down with uranium mixed. In corporate news, IAG facing a class action over pricing for loyal customers, NWS unveiled significant changes falling 0.3%, LLC sold a US business to kick off its restructure, down 2.4%. In economic news, CPI came in hotter than expected and shelved any hopes for a quick rate cut. Asian markets lower, Japan down 1.0%, China up 0.1% and HK down 1.9%. 10Y yields spiked to 4.40% on the CPI news. AUD steady. BHP asks for more time. Again.
Dow Futures down 174 points. NASDAQ Futures down 81 points.
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