PERTH: The Australian sharemarket edged lower at the open, following lacklustre leads from Wall Street as cautious investors awaited inflation data which will be key to the Reserve Bank’s immediate rate cut plans.
At the 10.15am (AEST) official market open, the benchmark S&P/ASX200 index lost 5.6 points, or 0.1 per cent, to 5,866.7 points, while the broader All Ordinaries index slipped 4.2 points, or 0.07 per cent, to 5,839.8 points.
CMC chief market analyst Ric Spooner said local investors would be cautious ahead of today’s release of Australian consumer price index data and US oil production data.
“The US oil production data could be a key number for oil and energy stocks this week,” he said.
“With last week’s data showing early signs of a plateau in production, markets will be looking for this to be confirmed to justify the recent jump in oil prices. This creates potential for volatility following release of this data.”
Mr Spooner said if underlying inflation misses significantly to the downside, inflation data will create a positive incentive for the RBA to cut to avoid the implied upside in real borrowing costs caused by lower than anticipated inflation.
Materials weighed most heavily on the market, losing 0.89 per cent.
BHP Billiton gave up 1.9 per cent to $30.02, after announcing it would pull back on its WA expansion plans along with a strong lift in third-quarter iron ore production.
Meanwhile Rio Tinto lost 1.23 per cent to $54.82.
