Australia's Inflation Data Looms Large for Stocks

Australian stocks were largely unchanged on Wednesday as investors awaited the release of August inflation data. The ASX 200 rose by just 0.1% ahead of the announcement, which is expected to show a 4.1% headline rate, up from 3.5% previously.

The market's cautious approach comes after a rocky month for Australian shares, with higher oil prices and rising bond yields contributing to concerns about inflation staying high. The Reserve Bank of Australia has kept its cash rate at a 15-year high and hinted at potential further increases if inflation proves stubborn.

Economists expect the core inflation rate, which strips out volatile items, to remain steady at 3.6%, above the RBA's target range of 2-3%. However, investors are keeping a close eye on the data as it could impact interest-rate swaps and influence market expectations for future policy moves.

The big-four banks were among those to feel the pressure, with their shares slipping by around 0.6-0.8% on the day. Gold miners, meanwhile, saw gains as bullion prices rebounded from a seven-week low.