Australian Stocks Show Strength As Inflation Worries Linger
What’s going on here?Australian shares managed to rally, with the ASX 200 closing up 0.73% at 8,938.6, as major news from Ampol and Amcor stole the spotlight from persistent inflation concerns.What does this mean?While global markets fretted over inflation, especially after the US producer price index jumped 0.9% in July, the S&P/ASX 200 held steady. This resilience was helped by a 0.8% rise in Australian household spending, as reported by Commonwealth Bank of Australia, boosted by a bump in spending around recent sporting events. Cochlear kept momentum going with steady earnings growth — reporting AU$5.98 per basic share for fiscal 2025 — and saw shares edge up 1%. Corporate action drove sentiment too: Ampol surged 8% after announcing a AU$1.1 billion acquisition of EG Australia, while Amcor slumped 10% on weaker-than-expected quarterly earnings at $0.20 a share, showing how sector performance can quickly swing on company news.Why should I care?For markets: Earnings and big deals drive momentum.Australian market moves were steered more by local dealmaking and earnings than by US rate worries. Ampol’s AU$1.1 billion buy of EG Australia powered optimism among fuel retail investors, while Amcor’s profit stumble weighed on the packaging sector. This mix shows just how quickly sentiment can change — even when the broader market looks solid.The bigger picture: Global inflation keeps investors on alert.A rising US producer price index and a cautious Federal Reserve mean global monetary conditions may stay tough. That leaves Australian stocks reliant on both homegrown momentum and decisions made overseas. As global inflation and policy shifts ripple through markets, both businesses and investors will have to balance local optimism with international risks.
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