Australian shares are trading flat, with a recent rally losing momentum after a spike in US inflation dimmed the outlook for global borrowing costs.
The S&P/ASX200 fell 7.6 points by midday on Wednesday, down 0.08 per cent, to 9121.4, as the broader All Ordinaries slipped 10.5 points, or 0.13 per cent, to 9256.
Higher-than-expected US inflation and hawkish commentary from Federal Reserve officials have markets bracing for higher interest rates from the world’s most important central bank, sending the greenback higher.
“The data release saw a jump in US rate hike expectations, a spike in US Treasury yields, a tumble in precious metals, a lift in the US Dollar, and a pullback in US stocks,” Capital.com senior market analyst Kyle Rodda said.
Ten of 11 local sectors were inching higher in early trade, but a one per cent slump in raw materials counterbalanced the modest advances elsewhere.
Gold stocks weighed particularly heavily as the precious metal eased to $US4039 an ounce after the US rates outlook dulled the lustre of non-yielding assets.
Silver also wiped the previous two sessions of gains to trade at $US51.40 an ounce.
Mega miners BHP, Rio Tinto and Fortescue were also in the red as copper prices and iron ore futures walked back some of their recent gains.
Financials provided some support, up 0.3 per cent as three of the big four banks improved and NAB continued to underperform as it slumped to $38.90 per share.
The energy segment advanced 0.4 per cent as Woodside and Santos helped balance a retreat in uranium and coal producers, as Brent crude prices stabilised near $US92 a barrel.
Consumer discretionary stocks improved by a similar amount, with some strong performances from Light & Wonder and Guzman y Gomez.
In company news, PEXA shares sold off after the property settlement software provider trimmed its 2027 financial year net profit guidance range to somewhere between a loss or gain of $6 million.
GQG Partners’ share price has dived more than 12 per cent after the investment firm’s funds under management shrunk by $US17.7 billion ($A25.8 billion) to $US131.6 billion in October.
The number of new home loans fell 15 per cent in the September quarter, with total value of new home loans down 15.5 per cent to $81.2 billion, the largest quarterly fall since the Australian Bureau of Statistics began measuring the figure in 2002.
The Australian dollar is buying 68.73 US cents, down from 69.26 US cents on Tuesday as the greenback firmed against the major currencies.
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