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ASX to fall as inflation tipped to hit 6.2 per cent

·2-min read
ASX sign and women at supermarket
ASX to open lower, with consumer price index data for the June quarter set to be released today. (Source: Getty)

ASX: The local market is set to fall ahead of the US Federal Reserve meeting on Wednesday.

The market closed slightly higher yesterday, bolstered by strong gains for the mining and energy sectors ahead of key inflation data.

Wall Street: US stocks ended sharply lower as a profit warning by Walmart dragged down retail shares and exceptionally weak consumer confidence data also fuelled fears about spending.

Tech stocks: Google's revenue growth during the past quarter decelerated to its slowest pace in two years as advertisers reined in their spending amid intensifying fears of an economic recession.

Microsoft also blamed tough economic conditions for its lower-than-expected growth.

Inflation: Australia could be about to record its worst inflation outcome in more than 31 years, paving the way for higher mortgage and lending rates.

The Australian Bureau of Statistics will today release the consumer price index data for the June quarter - when the price of a supermarket iceberg lettuce hit $10.

The financial market consensus is for a headline annual inflation rate of 6.2 per cent - the highest since the December quarter of 1990.

Global economy: The International Monetary Fund (IMF) is lowering its global growth forecast as it predicts the global economy will grow more slowly due to the war in Ukraine and persistently high inflation.

Gas concerns: European Union countries have approved a weakened emergency plan to curb their gas demand, after striking compromise deals to limit the cuts for some countries, as they brace for further Russian reductions in supply.

Europe faces an increased gas squeeze from Wednesday - the day Russia's Gazprom said it would cut flows through the Nord Stream 1 pipeline to Germany to a fifth of capacity.

Cashless cards: Thousands of people will be transitioned off cashless debit cards, with the Albanese Government set to introduce legislation to scrap the cards in Parliament today.

The Government will use the first full day of parliamentary business in the new term on Wednesday to introduce legislation to scrap the cards.

Climate change: Climate Change Minister Chris Bowen will today introduce the Government's much-anticipated bill to enshrine a 43 per cent emissions-reduction target by 2030.

Ancient coin: Israel's Antiquities Authority says it has discovered a rare 1,850-year-old bronze zodiac coin during an underwater survey off the coastal city of Haifa.

The coin bears the image of the zodiac sign Cancer behind a depiction of the moon goddess Luna.

-With AAP

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