The Australian stock market closed lower after the release of worse-than-expected inflation data and as the US debt ceiling stalemate continued.
At 1615 AEST on Wednesday, the benchmark S&P/ASX200 index was down 35.9 points, or 0.78 per cent, at 4,537.4, while the broader All Ordinaries index had dropped 33.7 points, or 0.73 per cent, to 4,612.6.
On the ASX 24, the September share price index futures contract was down 34 points at 4508 points, on volume of 26,124 contracts.
RBS Morgans private client adviser Bill Bishop said the release of unexpectedly high local inflation data had sent the market lower.
The consumer price index (CPI) rose by 0.9 per cent in the June quarter, taking the annual rate of inflation to 3.6 per cent, from 3.3 per cent.
The rise was more than most economists had expected.
“The CPI is now outside the RBA’s target band,” Mr Bishop said. “It’s up 0.9 per cent and annualised it is 3.6 per cent … it introduces a whole new ballgame.
“People see all this bad news from overseas and they’re not sure what’s happening here.”
He said intensifying concerns about the US debt-ceiling deadlock had also weighed on the market.
The White House and its divided Republican foes have failed to break an impasse that could see it default on its debt.
Politicians in Washington now have a week to go before the US hits the August 2 deadline to raise the $US14.3 trillion ($A13.11 trillion) debt ceiling.
In local trade, materials and resource stocks had a rough day, with Mirabela Nickel the worst performer in the top 200 stocks.
The Perth-based miner’s shares dropped 17 cents, or 8.02 per cent, to $1.95, despite boosting nickel production at its flagship Brazilian mine by 20 per cent during the three months to June 30.
BHP Billiton finished down 52 cents to $43.00, while Rio Tinto was down 40 cents at $82.59.
The spot price of gold in Sydney closed at $US1624.30 per fine ounce, up $US10.30 from Tuesday’s local close of $US1,614.00 per ounce.
Newcrest Mining gained 32 cents, or 0.8 per cent, to $40.50 at the close.
Banks and financials were also down, with Westpac worst hit, falling 34 cents, or 1.59 per cent, to $21.02.
National Australia Bank was down 37 cents at $24.45, ANZ fell 27 cents to $21.28, while Commonwealth slipped 40 cents to $49.82.
Telstra eased one cent lower, or 0.33 per cent, to $3.02.
National turnover was 2.1 billion shares, worth $5 billion, with 426 shares up, 632 down, and 381 steady.
AAP
