ASX trades flat, inflation figures hotter than expected

The news: The Australian sharemarket edged lower on Wednesday, giving up early gains after higher than forecast inflation data lifted odds of a cash rate hike in November. Economists at three of the big four banks now expect a rate hike at the RBA's next meeting. The ASX 200 lost 0.04% to close at 6,854.30, while the All Ordinaries nudged-upward by 0.01%. The Aussie dollar took a modest boost from the CPI data, and is trading at 63.8 US cents.

The numbers: The materials sector performed well, lifting 1.6% as large caps BHP, Fortescue and Rio Tinto all gained more than 2.3% on the back of a three-day rebound in the iron ore price. Mineral Resources jumped more than 4% after improving production results in its quarterly update. Real estate stocks lost 1.9%, while consumer staples fell 1.4%.

The context: Tomorrow is a huge day for AGMs, with Woolworths, Wesfarmers, Challenger, APA Group, JB Hifi, South32, Boral and Reece set to present to their shareholders. The Banks of Canada will deliver its rates statement overnight, and central bankers Christine Lagarde and Jerome Powell will deliver speeches in Athens and Washington respectively before Australian markets open tomorrow. RBA governor Michele Bullock and assistant governor Chris Kent will appear at senate estimates in Canberra tomorrow morning.