ASX win-streak ends as hot US inflation spooks markets

The news: The ASX lost ground for the first time in more than a week on Friday after overnight US inflation data overshot expectations, stoking fears of extended monetary tightening. The ASX 200 benchmark closed 0.56% down to 7051.00, but was still up 1.39% for the week. The Aussie dollar gave up most of its nine days of gains overnight, and is buying 63.2 US cents. Oil has been trending upward during the Australian session, amid a potential escalation of the Israel-Hamas conflict as the likelihood of a ground invasion grows. Brent crude currently costs US86.67 per barrel.

The numbers: By sector, only utilities (0.4%) and health care (+0.5) stocks finished in the green, and the uptick in health barely put a dent in Thursday's -4.5% tumble. IT stocks led the losses, giving up 1.9%, followed by real estate (-1.6%) and consumer discretionary stocks (-1.1%).

The context: It's a big night for central bankers, with Bank of England governor Andrew Bailey and European Central Bank president Christine Lagarde set to deliver speeches in Morocco overnight. Closer to home, the RBA will release its meeting minutes on Tuesday, followed by a speech from governor Michele Bullock on Wednesday. The parliamentary inquiry into ASIC oversight, capability and capacity continues next Friday.