ASX drops as inflation rises
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The news: The Australian sharemarket closed lower as new data showed inflation rose 4% in the 12 months to May 2024.
The numbers: The benchmark ASX 200 dropped 0.71% to end at 7,783, with eight of 11 sectors finishing in red.
The worst performing sector was A-REITs, down 2.15%, followed by consumer discretionary (1.49%) and financials (-1.15%).
Seven West Media lost 1.71% as it announced the appointment of Craig Haskins as chief financial officer amid a restructure that has cost more than 100 jobs in a bid to save some $120 million in costs.
The best performing sector was information technology, up 0.71%, followed by energy (0.36%).
Karoon Energy shares added almost 2% after Jarden analysts upgraded their rating on the oil and gas company.
Star Entertainment gained 0.5% as the casino operator named former Crown Resorts boss Steve McCann as its new CEO and managing director.
Lithium majors Liontown Resources (+4.4%), Pilbara Minerals (+2.9%) and Mineral Resources (+0.9%) rallied to close higher after initially sinking as global lithium prices extended their decline this week. Arcadium Lithium remained in the red, down 0.6%.
The Australian dollar jumped after the inflation data was released and is now buying 66.86 US cents.
The context: Investors will await fresh data from the US overnight including monthly new home sales, a leading indicator of the country's economic health.
On Thursday, the Melbourne Institute is due to release monthly inflation expectations, showing how consumers anticipate the price of goods and services will change over the next 12 months.
