FX.co ★ ASX 200 Closes Flat After Hotter-than-Expected Inflation

Australia’s ASX 200 finished virtually flat at 8,847 on Wednesday, as strength in non-energy minerals, consumer durables, and technology was largely offset by weakness in energy minerals, utilities, and logistics. The benchmark reversed early gains after inflation came in hotter than expected, reinforcing expectations of a near-term rate hike by the Reserve Bank of Australia. Annual headline inflation rose to a six-month high of 4.3% in September, extending its move above the RBA’s 2–3% target band.

Adding to the hawkish tone, Governor Bullock told lawmakers that inflation is likely to stay elevated for longer than projected in August. In the U.S., equity futures were mixed ahead of the Federal Reserve’s policy decision due later today.

Among major local movers, the big four banks surrendered part of their initial advance but still closed 0.3%–1% higher. In resources, Lynas Rare Earths rallied 7.3% from a recent low, Sandfire Resources climbed 4.8%, and PLS Group gained 3.8%. On the downside, Reece slumped 8.8%, while Ampol fell 3.8%, Yancoal Australia dropped 3.7%, and Whitehaven Coal declined 2.4%.