Closing Bell: ASX retreats to six-week low as RBA adjusts inflation expectations
The market was drowning in inflation data today, sliding on broad weakness as the RBA signalled inflation would remain higher for longer. Pic: Getty Images
- ASX plummets 0.91pc on general market weakness
- Healthcare scrapes into positive, 10 of 11 sectors lower
- RBA warns inflation will remain elevated into 2027
ASX in full retreat
Normally, Melbourne Cup Day gives the market a little boost. Things are quieter, the mood is up, and cash is splashing left and right.
Today, not so much.
The market chucked it into reverse gear early in the day and kept its foot down through much of trade.
By day’s end, the ASX 200 had fallen 81.1 points or 0.91%, resetting us to levels last seen around September 22 – about six weeks ago.
Healthcare managed a small showing, up just 0.04%, but there were no other signs of life.
Imricor Medical Systems (ASX:IMR) was the sector’s hero for the day. IMR smashed a clinical milestone today, successfully completing the world’s first MRI-guided ischemic ventricular tachycardia (VT) ablation.
The procedure, which involves destroying abnormal heart cells, was successfully performed by the Amsterdam University Medical Centre. IMR shares shot up 12%.
In other large-to-mid cap news, Westpac (ASX:WBC) climbed 1.5%, still humming on its quarterly results.
CSL (ASX:CSL), down 37% for the year to date, ticked up 0.91%. Droneshield (ASX:DRO) also climbed another 8.62%, now up 454% YTD.
RBA holds interest rates
The RBA kept the cash rate on pause today, surprising absolutely no one.
“The recent data on inflation suggest that some inflationary pressure may remain in the economy,” the Board’s statement read.
“With private demand recovering and labour market conditions still appearing a little tight, the Board decided that it was appropriate to maintain the cash rate at its current level at this meeting.
“Financial conditions have eased since the beginning of the year, but it will take some time to see the full effects of earlier cash rate reductions.
“Given this, and the recent evidence of more persistent inflation, the Board judged that it was appropriate to remain cautious, updating its view of the outlook as the data evolve.”
Translation: Things are still dicey, even if they’re looking better. No need for rash action.
The Board expects inflation to remain in the 3.2%-3.7% range for much of the next year before settling into the RBA’s preferred 2-3% range by about mid-2027.
The new numbers aren’t a huge shift from the RBA’s original predictions but they have put another nail in the coffin for any hope of another interest rate cut this year.
All the changes straight from the horse’s mouth below.
According to Bloomberg data, the market is pricing about an 80% chance that the RBA will make one more interest rate cut by mid-2026.
ASX Leaders
Today’s best performing stocks (including small caps):
| Code | Name | Last | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| SPX | Spenda Limited | 0.004 | 100% | 28632162 | $9,729,717 |
| FRX | Flexiroam Limited | 0.02 | 67% | 37216564 | $18,208,783 |
| XPN | Xpon Technologies | 0.02 | 67% | 27497610 | $5,884,276 |
| T3D | 333D Limited | 0.098 | 46% | 1031637 | $13,501,872 |
| MSG | Mcs Services Limited | 0.013 | 44% | 30360749 | $1,782,897 |
| FBR | FBR Ltd | 0.004 | 33% | 2566225 | $19,655,919 |
| TRI | Trivarx Ltd | 0.028 | 30% | 2143150 | $15,204,822 |
| AMS | Atomos | 0.027 | 29% | 4474757 | $25,707,957 |
| DDT | DataDot Technology | 0.005 | 25% | 3573301 | $4,843,811 |
| MMR | Mec Resources | 0.005 | 25% | 2714204 | $7,487,959 |
| SRN | Surefire Rescs NL | 0.0025 | 25% | 1444868 | $8,051,219 |
| TMK | TMK Energy Limited | 0.0025 | 25% | 2720016 | $23,794,766 |
| WEL | Winchester Energy | 0.0025 | 25% | 2500000 | $2,726,038 |
| DTI | DTI Group Ltd | 0.028 | 22% | 38065369 | $20,633,365 |
| OLL | Openlearning | 0.047 | 21% | 1708177 | $21,222,693 |
| AQX | Alice Queen Ltd | 0.006 | 20% | 8527724 | $6,923,481 |
| MOM | Moab Minerals Ltd | 0.003 | 20% | 650255 | $4,686,665 |
| GLA | Gladiator Resources | 0.019 | 19% | 2666385 | $13,021,638 |
| TNY | Tinybeans Group Ltd | 0.135 | 17% | 130419 | $17,009,700 |
| NYR | Nyrada Inc. | 0.9 | 17% | 1250311 | $184,089,318 |
| KEY | KEY Petroleum | 0.073 | 16% | 32900 | $2,132,100 |
| OCN | Oceanalithiumlimited | 0.185 | 16% | 317665 | $26,639,421 |
| ALM | Alma Metals Ltd | 0.008 | 14% | 672464 | $13,000,660 |
| CCO | The Calmer Co Int | 0.004 | 14% | 2162500 | $10,704,236 |
| ENV | Enova Mining Limited | 0.008 | 14% | 155530 | $11,053,200 |
In the news…
Xpon Technologies (ASX:XPN) was the only stock on the ASX leaders’ tables with any communications out today. It wasn’t an announcement either – XPN got slapped with a speeding ticket from the ASX for rocketing up more than 40% on no fresh news.
XPN says it’s got no clue why its shares are bouncing today.
Its latest announcement was a quarterly report released a week ago, which delivered positive operating cashflow numbers of about $990,000 for the quarter. Doesn’t seem spicy enough to rip 40% higher, but here we are.
ASX Laggards
Today’s worst performing stocks (including small caps):
| Code | Name | Price | % Change | Volume | Market Cap |
|---|---|---|---|---|---|
| BUY | Bounty Oil & Gas NL | 0.002 | -33% | 145057 | $4,684,416 |
| PIM | Pinnacleminerals | 0.1 | -31% | 2441511 | $14,567,195 |
| C7A | Clara Resources | 0.003 | -25% | 900000 | $3,393,180 |
| PIL | Peppermint Inv Ltd | 0.003 | -25% | 382786 | $10,036,083 |
| NVA | Nova Minerals Ltd | 0.82 | -23% | 3304136 | $437,196,534 |
| IRX | Inhalerx Limited | 0.026 | -21% | 610000 | $7,192,289 |
| MML | Mclaren Minerals | 0.02 | -20% | 1852065 | $4,968,370 |
| AYM | Australia United Min | 0.004 | -20% | 4865209 | $9,212,887 |
| JAVDH | Deferred Settlement | 0.075 | -19% | 118170 | $18,756,675 |
| PFE | Pantera Lithium | 0.022 | -19% | 6466993 | $12,792,160 |
| MNC | Merino and Co | 0.115 | -18% | 20000 | $7,430,720 |
| ENT | Enterprise Metals | 0.005 | -17% | 3123340 | $8,964,904 |
| ERA | Energy Resources | 0.0025 | -17% | 1106864 | $1,216,188,722 |
| IPT | Impact Minerals | 0.005 | -17% | 2048337 | $28,464,595 |
| BSX | Blackstone Ltd | 0.042 | -16% | 9756054 | $84,485,236 |
| 8IH | 8I Holdings Ltd | 0.022 | -15% | 73081 | $9,052,182 |
| EQS | Equitystorygroupltd | 0.011 | -15% | 99481 | $2,299,022 |
| GGR | Goldengloberesources | 0.14 | -15% | 726088 | $18,444,595 |
| SRR | Saramaresourcesltd | 0.04 | -15% | 757567 | $17,352,731 |
| RND | Rand Mining Ltd | 2.25 | -15% | 10980 | $150,152,537 |
| 5EA | 5Eadvanced | 0.665 | -15% | 102404 | $11,940,568 |
| A8G | Australasian Metals | 0.09 | -14% | 86000 | $6,078,421 |
| AJX | Alexium Int Group | 0.006 | -14% | 88067 | $11,263,913 |
| RDN | Raiden Resources Ltd | 0.006 | -14% | 8342179 | $24,156,240 |
| VRC | Volt Resources Ltd | 0.006 | -14% | 10340895 | $32,793,946 |
In Case You Missed It
TG Metals (ASX:TG6) has started drilling to extend down-dip resources at its Van Uden project after raising $5.4m through a completed share placement.
Tylah Tully looks into a beefed up Brightstar Resources (ASX:BTR) executive bench as the company ramps up its gold production ambitions.
As ESG moves from buzzword to benchmark, Zagga’s commitment to the UN’s Principles for Responsible Investment shows how responsible capital is helping build Australia’s future.
Trigg Minerals (ASX:TMG) has expanded its US tungsten portfolio with claims covering the vast majority of the Nightingale Tungsten District in Nevada.
Theta Gold Mines (ASX:TGM) continues to make strides towards the commissioning of a new South African gold mine by the end of 2026.
Uvre (ASX:UVA) reports strong rock chip sample results from its Waitekauri and Oturehua gold projects in New Zealand.
Pinnacle Minerals (ASX:PIM) study to determine potential to restart historical Lightning Peak gold-silver mine within its Thunder Mountain project.
Trading halts
AuKing Mining Ltd (ASX:AKN) – clarification of sale-agreement status regarding Cloncurry project
SportsHero Ltd (ASX:SHO) – court application re cleansing notice omission
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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