Australian share gains derailed by inflation surprise
By Adrian Black
Australian shares reversed an early lead due to sticky inflation figures. -AAP Image
Australia's share market has handed back an early lead to end the session lower, after hotter-than-expected inflation figures raised the odds of incoming interest rate hikes.
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The S&P/ASX200 fell 36.8 points on Wednesday, down 0.4 per cent, to 9,127.8, as the broader All Ordinaries lost 36.1 points, or 0.39 per cent, to 9,338.8.
The top-200 had surged more than 50 points higher in early trade, but retreated after July inflation figures overshot forecasts.
Sticky price growth has raised the odds of further Reserve Bank interest rate hikes, with markets pricing a one-in-three chance of a September increase.
A recovery in bank shares was put on hold as the big four reversed course, while easing oil prices dragged energy stocks lower as Iran and Oman discussed a plan to reopen the Strait of Hormuz.
The Australian dollar is buying 70.82 US cents, up from 71.45 US cents on Tuesday at 5pm.
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