Australia shares end flat as financials offset gains in tech, energy stocks

Mirvac

28/02/2024 06:19

* 
      Key U.S. inflation data in focus 
    

        * 
      FMG ends at lowest since Dec. 2023
    

        * 
      Tech stocks end at 3-year high
    

  
    By Roshan Thomas
       Feb 28 (Reuters) - Australian shares ended flat on
Wednesday, as a bleak performance by heavyweight financials
offset a jump in technology and energy stocks, while investors
digested a weaker-than-expected inflation print for further cues
on the country's rate trajectory.
    The benchmark index S&P/ASX 200  .AXJO  ended marginally
lower at 0.03% to 7,660.4 points, snapping its four-session
winning run.
    Australia's monthly consumer price index increased at an
annual pace of 3.4% in January. The Reserve Bank of Australia's
(RBA) inflation target range midpoint stands at 2%-3%.
    The central bank said on Feb. 20 it needed more time to be
confident to check if inflation was on the decline before ruling
out another rate hike. The RBA had in February considered hiking
rates by another quarter-point, but decided to hold steady. 
    The RBA and central banks in general tend to underestimate
the lag effect of monetary policy, according to Brad Smoling,
managing director at Smoling Stockbrocking.
    "I do hope the RBA cuts rates. The damage has been done now.
The real economy is stalling." 
    Investors now shift their focus to U.S. inflation data due
later in the day.
    In Sydney, banks  .AXFJ  led losses by slipping 0.5%, with
the "Big Four" banks ending between 0.1% and 1% lower.     
    Meanwhile, top consumer companies also capped gains, with
Coles Group  COL.AX , Wesfarmers  WES.AX  and Woolworths Group
 WOW.AX  ending between 0.4% and 1.7% in the red.
    Miners  .AXMM  lost 0.1%, with Fortescue  FMG.AX  recording
a drop of 5.5%, its lowest closing level since mid-December
2023, due to its ex-dividend payout date.
    Technology stocks  .AXIJ  led the gains by advancing 2.9%,
recording their highest closing since December 2021. ASX-listed
shares of Block  SQ2.AX  rose 5.6% while Xero  XRO.AX  gained
4.4%. 
    Energy stocks  .AXEJ  rose 0.8%, with Santos  STO.AX 
advancing 1.4%.
    The New Zealand benchmark S&P/NZX 50 index  .NZ50  rose 0.6%
to 11,763.32 points.
    New Zealand's central bank held the cash rate steady at
5.5%, but said policy needed to remain restrictive.

 (Reporting by Roshan Thomas in Bengaluru; Editing by Mrigank
Dhaniwala)
 ((Roshan.Thomas@thomsonreuters.com;))
 
((For more information on DIARIES & DATA:
 U.S. earnings diary   RESF/US   
 Wall Street Week Ahead    .N/O 
 Global Economy Week Ahead  DATA/ 
................................................................
For latest top breaking news across all markets           NEWS1 ))