Sticky inflation has investors on the back foot as markets brace for higher borrowing costs. -AAP Image
Australia's share market has thrown away an early lead after an upside inflation surprise had markets betting on a Melbourne Cup interest rate hike.
Hold tight - we’re checking permissions before loading more content
The S&P/ASX200 fell 2.8 points on Wednesday, down 0.03 per cent to 8847.3, as the broader All Ordinaries rose 2.6 points, or 0.03 per cent, to 8971.4.
A morning rally for the top-200 turned to dust after higher-than-expected September inflation figures prompted interest rate markets to brace for an expected Reserve Bank rate increase on Tuesday.
Rate-sensitive sectors such as consumer cyclicals, industrials and utilities sold off, while rebounding miners and tech stocks helped limit the damage as Samsung and SK Hynix earnings added fuel to the recently reinvigorated AI and copper narrative.
The Australian dollar is buying 70.33 US cents, up from 70.22 US cents on Tuesday at 5pm.
12°C