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ASX 200 LIVE: ASX falls 1pc as traders dial up RBA rate bets; Bapcor soars 41pc
Gold climbs back above $US4600 as investors weigh Fed rate path
The Australian sharemarket tumbled the most in three months as traders and economists ramped up bets on a fourth interest rate rise by the Reserve Bank of Australia this year following a hot inflation report.
The S&P/ASX 200 Index dropped 1 per cent, or 89.60 points, to 9038.20, the most since early June amid broad selling, with nine of the 11 sectors weaker as traders also digested another round of corporate earnings.
Money markets imply a 50:50 chance the cash rate will rise to 4.6 per cent at the September 29 policy meeting, up from 13 per cent earlier this week and are almost fully priced by the end of the year.
ASX slumps on rate hike calls; Qantas lifts, Wesfarmers, Sigma slump
The Australian sharemarket had its biggest slump in 12 weeks as bets firmed for another interest rate rise as early as next month and investors digested another flood of results from companies including Qantas and Wesfarmers.
The S&P/ASX 200 fell 89.60 points, or 1 per cent, to 9038.20 on Thursday, with all 11 sectors in the red bar healthcare and industrials. The losses came after the bourse fell 0.4 per cent on Wednesday as shock inflation figures put another rate hike on the table. Wall Street drifted through a quiet session overnight after a report showed US inflation was also worse than expected.
Expectations of another rate rise by the Reserve Bank firmed after the Australian Bureau of Statistics said on Wednesday underlying inflation in July had unexpectedly risen by 0.5 per cent. The gauge most watched by the RBA had been forecast to ease, but instead remained steady at 3.6 per cent.
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