26.08.202606:39:15UTC+00ASX 200 Turns Early Strength to Close Lower

The ASX 200 slipped 37 points, or 0.4%, to close at 9,128 on Wednesday, surrendering early gains and breaking a three-session winning streak. Risk sentiment deteriorated as U.S. equity futures traded mostly lower ahead of the key PCE inflation release later today and Fed Chair Warsh’s speech at Jackson Hole on Friday.

On the domestic front, Australian headline inflation for July came in above expectations, driven by higher fuel and travel costs, while core inflation also surprised to the upside, heightening the risk of another RBA rate hike. Adding to the cautious mood, construction work fell 2.1% qoq in Q2, confounding forecasts of an increase.

Sector-wise, losses were led by technology, communications, and energy minerals, though gains in non-energy minerals and retail trade helped limit the overall pullback. Lynas Rare Earths dropped 3.9% after missing profit estimates, and two of the big four banks eased between 0.1% and 1.1%. In contrast, Evolution Mining advanced 0.4% on the back of firmer gold prices. Woolworths climbed 3.7% after posting a strong profit increase and indicating that consumers are increasingly focused on value as household budgets come under pressure.