ASX 200 Slumps on Rate Hike Concerns, HSI Stalls: Hang Seng Index, Nikkei 225 Also in Focus

Welcome to Extreme Investor Network, your go-to source for all things related to the stock market, trading, and Wall Street. Today, we’re diving into the recent movements of the ASX 200.

On Wednesday, the ASX 200 saw a 1.01% decrease, driven by hotter-than-expected Australian inflation numbers that sparked speculation of a potential RBA rate hike in August. The Monthly CPI Indicator rose from 3.6% to 4.0% in May, surpassing economists’ forecast of 3.8%.

ABS Head of Price Statistics, Michelle Marquardt, highlighted the impact of volatile price changes on CPI inflation, emphasizing the importance of looking at underlying inflation trends. In May, underlying inflation stood at 4.0%, down slightly from April’s 4.1%.

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The banking sector felt the pressure of higher interest rate expectations, with ANZ Group Holdings Ltd (ANZ) and Commonwealth Bank of Australia (CBA) both seeing declines of 1.23% and 1.10%, respectively.

Gold and mining stocks also contributed to the market losses, with Northern Star Resources Ltd. (NST) dropping by 3.50% as gold prices continued their downward trend.

On the other hand, oil-related stocks outperformed, with WTI Crude prices on the rise. Woodside Energy Group Ltd (WDS) saw a 0.59% increase on Wednesday.

Investors are closely monitoring trade talks between the EU and China, as evidenced by the 1.32% and 1.54% declines in BHP Group Ltd (BHP) and Rio Tinto Group Ltd. (RIO).

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