Australian shares rise despite inflation concerns

Summarised from 2 outlets · Updated 28 Oct, 02:20 · Archive

Australian shares rose 0.41 per cent, but higher-than-expected inflation increased the likelihood of a November rate hike.

Australian shares rose 0.41 per cent to 8886.1 on the S&P/ASX200 index, with the broader All Ordinaries lifting 0.45 per cent to 9008.8. Renewed artificial intelligence sector confidence and easing oil prices drove the gains, though higher-than-expected inflation complicated the picture.

September headline inflation reached 4.3 per cent, exceeding forecasts. The Reserve Bank's preferred annual trimmed mean measure edged higher to 3.6 per cent. Markets lifted the probability of a November rate hike from 62 per cent before the inflation data to 80 per cent afterwards, with the potential increase falling on Melbourne Cup Day.

Mining stocks led the rally. BHP rose 0.5 per cent to $58.28, while Rio Tinto improved to $151.19 on firming copper prices. Gold jumped more than 3 per cent, trading at US$4059 an ounce. Battery minerals and rare earths producers also improved. Energy stocks fell 1.3 per cent, though uranium producers rebounded. The Australian dollar spiked to a five-week high of 70.54 US cents.

How it is being reported

• Australian shares lift but inflation spurs rate worriesThe local share market has pared some of its early gains after a hotter-than-expected inflation print narrowed the odds of an imminent interest rate hike.The West Australian · 28 Oct, 01:49
• Australian shares lift but inflation spurs rate worriesThe local share market has pared some of its early gains after a hotter-than-expected inflation print narrowed the odds of an imminent interest rate hike.Perth Now · 28 Oct, 01:49

In this story: Reserve Bank · BHP · Rio Tinto · Global X ETFs · Australia

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