ASX closes lower as inflation uptick surprise dashes Nov rate cut hopes
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The news: The Australian sharemarket closed lower on Wednesday after higher than expected consumer price index data quelled any hope that the Reserve Bank would cut interest rates next week.
Following the publication of the latest CPI figures, the Commonwealth Bank said it now believes that the monetary policy easing cycle is over.
The benchmark ASX 200 fell 0.96% to end at 8,926.2 with seven out of the 11 sectors finishing in the red.
The healthcare sector (-2.3%) was the worst performing as CSL (-4%) continued to fall after slashing its full-year profit and revenue guidance on Tuesday. Pro Medicus (-4.4%), Resmed (-0.5%) and Cochlear (-2.2%) also fell.
However, Ansell (+5.9%) finished higher after upgraded its full-year earnings guidance after foreign exchange movements boosted margins in the first quarter
The finance sector (-1.9%) also plunged as Commonwealth Bank (-2.1%), NAB (-2.6%), Westpac (-3.1%) and ANZ (-0.4%) finished lower.
Biggest movers:
- DroneShield (-12.2%) – Plunged despite no company specific news. The stock is still up 456% in the year to date.
- Lynas Rare Earths (-3.4%) – Plans to expand its processing plant in Malaysia with the establishment of a new heavy rare earth separation facility, which is currently the only non-China location with this capability.
- Boss Energy (+19.8%) – Delivered record quarterly drummed production of uranium and an $11.2 million increase in cash on hand compared to the previous quarter due to “robust” margins. Sales by weight also quadrupled quarter on quarter. Rival uranium producers Paladin Energy (+11.3%) and Deep Yellow (+7.9%) also finished higher.
- Nick Scali (+12.7%) – Recorded an 11.6% rise in quarterly written sales orders for Q1 FY26 compared to the prior corresponding period.
Executive moves:
- ASX Limited (-1%) – Announced the retirement of its group executive for securities and payments Clive Triance, who will leave in June 2026. Triance has been leading the ASX's CHESS replacement program since 2023.
- L1 Group – Chief executive Jeff Peters is stepping down from the role, effective today, and will be replaced by Julian Russell. The fund manager also announced a $330 million equity raise and has entered a trading halt.
Other news:
- Siteminder (+2.5%) – Reiterated its full-year outlook, reporting continued growth in annual recurring revenue at the start of fiscal 2026.
- Woolworths (+2.4%) – Reported a 2.7% increase in sales for the first quarter of FY26 compared to the previous corresponding period, but the company’s CEO Amanda Bardwell described this as “below our aspirations”.
- Helia Group (-1.8%) – Reaffirmed its full-year guidance but flagged that its gross written premium is "well down on historic levels" with the number of claims in the third quarter remaining "extremely low".
What’s ahead:
- The Bank of Canada will make an interest rate decision overnight at 00:45am AEDT.
- The US Federal Reserve will make an interest rate decision on Thursday at 5:00am AEDT
- The Bank of Japan is expected to make an interest rate decision on Thursday at an unspecified time.
- Companies holding their annual general meeting on Thursday include Challenger, Woolworths, Whitehaven Coal, Kelsian Group, JB Hi-Fi, Healius and Wesfarmers.
