• ASX slipped as CPI data suggests rates could stay elevated
  • Australian CPI increased by 5.2% from a year earlier, matching expectations
  • Star Entertainment plunged after a cap raise


Local shares closed -0.3% lower today after the CPI report shows that inflation in Australia increased to 5.2% YoY in August, matching market expectations.

According to the ABS, the biggest contributions to the annual increase were transport (+7.4%), housing (+6.6%), and insurance and financial services (+8.8%).

The latest reading supports the RBA’s case of keeping the door open for further tightening, but it’s unlikely to force the board into further hikes in the short term.

“Michele Bullock won’t be rushing to raise rates next week after just one month of headline inflation picking up steam,” said Josh Gilbert, market analyst at eToro.

On the ASX, all sectors except for Real Estate were down.

Leading the decliners were gold stocks Evolution Mining (ASX:EVN) and Newcrest Mining (ASX:NCM).

Insurance companies were also hit hard, with Insurance Australia (ASX:IAG) and Suncorp (ASX:SUN) falling -2% each.

The Aussie dollar meanwhile has continued its losing streak –plunging to US63.83c after being hammered by the rising USD and bleak news out of the Chinese property sector.

This comes after China’s beleaguered property developer Evergrande Group’s founder and chairman Hui Ka Yan was reportedly placed under police control.

Asian stocks were, however, mixed today as China reported  improved industrial profits. This data appears to shrug off turmoil in the property sector.



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Sleep-focused tech company ResMed (ASX:RMD) jumped 5% after Goldman Sachs said that weight loss drugs would have a small impact on the obstructive sleep apnea market.

Resmed has been under pressure from short sellers who believe that weight loss drug Ozempic, produced by Novo Nordisk, could reduce demand for sleep apnoea products.



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Embattled casino operator Star Entertainment (ASX:SPR) plunged -16% following its $565 million cap raise from institutional investors at 60c.

Liquor chain operator Endeavour (ASX:EDV) fell 1% after the board told shareholders not to vote former Myer chairman Bill Wavish as an independent non-executive director, ahead of the AGM on 30 October.