ASX 200 Edges Down as CPI Looms

The ASX 200 edged down 0.1% to around 8,648 on Wednesday, extending losses from the previous session as investors awaited closely watched CPI report due later in the day. Headline annual inflation is forecast to ease slightly to 4.4% in April from 4.6% in March, though it would still remain near its highest level since 2023 and well above the Reserve Bank’s 2%–3% target range. Meanwhile, the RBA Trimmed Mean CPI, a key gauge of underlying inflation, is expected to edge up to 3.4% from 3.3%. Overall, the data may provide only limited relief for policymakers and are unlikely to ease pressure on the RBA to maintain a hawkish stance. Still, markets continue to price in a pause at the central bank’s mid-June meeting amid concerns that the Iran conflict could weigh on Australia’s economy. Financial stocks led the declines, particularly Commonwealth Bank of Australia (-0.3%), Westpac Banking Corporation (-1.3%), National Australia Bank (-1.6%), and ANZ Group Holdings (-0.8%).

Australian shares slipped on Tuesday, with the ASX 200 down 34 points, or 0.4%, to close at 8,658, snapping a three-day advance and pulling back from a two-week peak, as traders secured profits ahead of April CPI data due Wednesday. Headline inflation is expected to ease to 4.4% from March’s 2-1/2-year high of 4.6%, though still above the Reserve Bank’s 2–3% target. Meanwhile, the trimmed mean is seen edging up to 3.4% from 3.3%. Selling pressure hit logistics, consumer non-durables, consumer services, and energy minerals, partly offset by gains in consumer durables and industrial services. ASX Ltd. tumbled 12%, its steepest fall in over a decade, on tech-driven cost warnings. Two of the big four banks fell between 0.2%–0.5% while other notable losers included Aristocrat Leisure (-3.4%), Insurance Australia Group (-2.1%), and Challenger Ltd. (-4.8%).

Australian shares dipped 45 points or 0.5% to 8,647 on Tuesday morning trade, ending gains in the prior three sessions and pulling back from a two-week high. Traders booked profits amid caution ahead of domestic CPI data later this week. Inflationary pressures, coming back since mid-last year, have already prompted three rate hikes so far this year. In March, figures hit their highest since September 2023, driven in part by surging fuel costs. Still, a rally in U.S. stock futures capped losses, reflecting hopes for a breakthrough in the U.S.-Iran peace talks. Financials, consumer non-durables, and process industries dragged the ASX 200 lower, amid notable declines in Goodman Group (-3.6%), Genesis Minerals (-1.7%), and Ampol Ltd. (-1.2%). ASX Ltd. tumbled 9.1% after reporting that it expects total expenses to rise between 18% and 21% in FY 2027, driven by higher technology spending, regulatory remediation, and growth investments. The four major banks fell between 0.8% to 1.8%.