The benchmark ASX 200 index slipped 0.22 per cent to close at 8,213.30 points, while the broader All Ordinaries shed 0.18 per cent to finish at 8,456.80 points. Meanwhile, the Australian dollar held steady at 61.88 US cents.
Investor sentiment wavered throughout the day, with traders awaiting the release of critical domestic employment data and U.S. inflation figures—two key factors likely to influence future interest rate decisions. Market analyst Laura Besarati highlighted the cautious mood, noting that many investors preferred to take a “wait-and-see” stance ahead of these pivotal updates. Although the Reserve Bank of Australia is widely expected to lower interest rates next month, the forthcoming data could either reinforce or challenge this outlook.
Among the 11 sectors on the ASX, eight ended the day in negative territory. Pharmaceuticals and entertainment companies were some of the weakest performers. Neuren Pharmaceuticals plunged 8.42 per cent, while The Star Entertainment Group dropped 5.36 per cent. Logistics software company WiseTech Global also had a rough session, losing 3.7 per cent and closing at its lowest point since late October.
Amid the broader market decline, lithium miners provided a rare bright spot. Liontown Resources saw a sharp 40-cent jump, closing at 58 cents, while Pilbara Minerals gained 4 per cent. Pilbara’s rise came after the Western Australian government announced a $15 million grant to support its Pilgangoora lithium project. In partnership with Calix Limited, Pilbara Minerals plans to build a demonstration-scale electric spodumene calciner, aiming to reduce carbon emissions across the lithium supply chain. This project highlights ongoing efforts to boost onshore processing and promote sustainability in the production of battery materials.
Guzman y Gomez, the Mexican food chain that debuted on the ASX last year, also had a strong day. Its shares climbed nearly 5 per cent to $40.23 after UBS analysts upgraded the stock from “sell” to “neutral,” reflecting renewed confidence in the company’s long-term growth prospects.
Looking ahead, market movements will likely hinge on upcoming economic data releases. Australia’s jobs report and U.S. inflation figures are expected to generate significant reactions. Core inflation in the U.S.—a key metric for the Federal Reserve—is forecast to dip slightly, from 3.3 per cent to 3.2 per cent year-on-year. Strong economic data in the U.S. has already pushed back expectations for a rate cut to the latter half of the year, raising the stakes for these updates. Investors will remain closely attuned to how these developments shape monetary policy and market trends moving forward.
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