28 May Markets at a glance

It is a relatively flat trading day for the S&P/ASX200 as gains in mining and gold stocks were offset by losses in financials as investors sit on the sidelines ahead of key inflation data released on Wednesday.

April’s CPI print is expected to give markets more clarity on the Reserve Bank of Australia’s (RBA) interest rate outlook. NAB expects inflation to fall back to 3.4% from 3.5% in the month, in line with market consensus.

Globally, US stock futures have opened higher ahead of the reopening of Wall Street after a public holiday.

In currency markets the USD/CNY has affirmed its upward trajectory, as the US dollar slips for the third straight session with traders awaiting key PCE data on Friday. The Australian dollar (AUD) is trading higher, shrugging off a retail sales data miss, with April’s data showing a miniscule rise of just 0.1% as shoppers refrained from spending in the face of high borrowing costs and rising rents.

Monthly turnover, current prices, by industry – percentage change from previous month

While not covered by the retail data, costs for services continue to rise much faster than goods prices, from insurance to health and electricity.

The sticky service inflation is a key factor for the why the RBA may hold pat on lowering interest rates this year.

Stock specific, shares of Australian listed Peter Warren Automotive (PWR) have sunk to a record low, with the stock posting its biggest ever intraday percentage decline.

It comes as the company sees underlying profit before tax for FY24 to be in the range of AU$52 million, 12% below the Visible Alpha consensus midpoint, according to Citi.

Finally, shares of Southern Cross Media Group (SXL) are in focus, retreating from an over 7% spike earlier in the session, after it received a sweetened approach by Australian Community Media (ACM) with a proposal for southern Cross to acquire assets of ACM. SXL says the proposal is materially different to ACM’s previous one that it rejected in November 2023. 

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