SYDNEY: The Australian sharemarket closed largely flat, despite a strong rally in mining stocks, as uncertainty over the timing of future cuts to the official cash rate weighed on financial stocks.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 index was 7.3 points, or 0.13 per cent, higher at 5,844.8, while the broader All Ordinaries index was up 7.5 points, or 0.13 per cent, at 5,820.3.
Despite strong leads and a booming iron ore rebound, the local sharemarket struggled for direction throughout the day.
CMC Markets sales trader Betty Lam said investors were still pondering yesterday’s inflation numbers and what they mean for the timing of a future rate cut.
Official inflation data showed the slowest rate of headline CPI in three years, but underlying inflation was near the centre of the Reserve Bank’s target band — leading the interbank bond market to price in a 50/50 chance of a May rate cut.
