FX.co ★ Australian Shares Slip After Inflation Data

The S&P/ASX 200 Index experienced a 0.13% decline, closing at 8,397 on Wednesday. This drop reversed prior gains as investors evaluated stronger-than-expected inflation data. Australia's monthly Consumer Price Index (CPI) remained steady at 2.4% in April, consistent with the preceding two months but slightly surpassing market forecasts of 2.3%. Despite the unexpected inflation figures, the Reserve Bank of Australia is still anticipated to continue its monetary policy easing, following a recent 25 basis point rate cut. The central bank's ongoing concerns include slowing inflation and potential downside risks to economic growth amid US-China trade tensions. The market's downturn was primarily driven by declines in mining and gold sectors, with significant losses noted from companies such as BHP Group (-0.4%), Mineral Resources (-5.3%), and Northern Star Resources (-1%). Conversely, Web Travel Group distinguished itself with a 12.1% surge in performance, attributed to strong full-year earnings that resisted broader economic challenges. Analysts have identified opportunities for further earnings upgrades extending into 2026.