The Australian sharemarket closed sharply lower on Wednesday, with losses across nearly all sectors as hotter-than-expected inflation data and caution from the United States Federal Reserve weighed on sentiment.
The benchmark S&P/ASX 200 index ended 81.40 points or 0.9% lower at 8,764.5, with nine of the 11 sectors in the red.
Financials led the declines, with Commonwealth Bank down 1.4%, NAB falling 2.3%, ANZ declining 1.8%, while Westpac dropped 3.2% amid news that 200 teller roles would be cut.
Health care stocks were also weaker, with CSL falling 1.3%, Pro Medicus shedding 3.3%, and Fisher & Paykel Healthcare closing 0.3% lower.
Rate-sensitive technology names tracked declines on Wall Street, with Xero down 1.6%, WiseTech falling 2.1%, and Block off by 1.1%.
Consumer names were under pressure as well. Myer shed 2.1%, Wesfarmers lost 1.1%, and JB Hi-Fi fell 1.4%.
The losses followed overnight comments from Fed Chair Jerome Powell, who reiterated that “near-term risks to inflation are tilted to the upside” and refrained from signalling further rate cuts, sparking a repricing of monetary policy expectations.
Adding to the pressure, fresh data from the Australian Bureau of Statistics (ABS) showed consumer prices rose 3% in August, above market expectations of 2.9% and at the top of the Reserve Bank’s target band.
Among individual movers, DroneShield climbed 6.2%, extending gains for the third consecutive session after announcing an expansion of its research and development operations in the United States.
Bond markets also reflected the shift in rate expectations, with yields rising across the curve. The 10-year yield rose 1.1% to 4.294% and the 2-year added 2.2% to 3.457%.
