The local share market has finished lower, dragged in part by losses by its major miners and lithium producers, even as fresh economic data bolstered the case that interest rates have peaked domestically.
The benchmark S&P/ASX200 index on Wednesday finished down 52 points, or 0.69 per cent, to 7,468.5, while the All Ordinaries dropped 46.8 points, or 0.6 per cent, to 7,702.7.
The losses came even after the Australian Bureau of Statistics reported that inflation came in slightly less than expected in November, with consumer prices rising 4.3 per cent in the past 12 months, down down from 4.9 per cent in the year to October.
"Today's notable decline in the annual rate of inflation from the monthly CPI report is encouraging news and on balance reduces the risk of an RBA interest rate increase next month," Betashares chief economist David Bassanese said.
Separately the ABS reported the number of job vacancies fell slightly in November, indicating the labour market remains relatively tight.
The ASX's RBA Rate Indicator was on Tuesday pricing in a five per cent chance of a rate hike at the central bank's February 6 meeting, odds that were likely to fall further following Wednesday's readouts, which also could inspire quicker rate cuts.
Mr Bassanese said his base case was for the RBA to cut rates twice late this year.
Seven of the ASX's 11 sectors finished lower on Wednesday and four closed higher.
Mining was the biggest loser, dropping 2.1 per cent as Fortescue declined 1.8 per cent to $27.56 and BHP and Rio Tinto both fell 2.3 per cent, to $47.86 and $128.90, respectively.
Lithium miners had a dismal day, with Arcadium Lithium dropping 7.9 per cent, IGO retreating 8.1 per cent, Mineral Resources falling 6.1 per cent and Pilbara finishing down 4.4 per cent.
The quartet were the four worst performers in the ASX200 for the day, with goldminer Newmont in fifth place with a 4.4 per cent drop.
In the energy sector, uranium producers surged as the US Department of Energy announced $US500 million plan to jump-start a domestic supply of the high-assay low-enriched uranium needed to power the next generation of nuclear reactors.
Paladin rose 10.9 per cent, Deep Yellow climbed 6.4 per cent and Bannerman Energy soared 10.8 per cent.
Coalminers also continued mostly doing well, with New Hope finishing up 0.8 per cent and Whitehaven adding 0.9 per cent although Yancoal dipped 0.4 per cent.
The Big Four banks all finished lower, with Westpac dropping 0.6 per cent to $22.96, CBA down 0.9 per cent to $112.04, ANZ down 0.2 per cent to $25.83 and NAB dipping 0.6 per cent to $30.72.
The Australian dollar was buying 67.03 US cents, from 67.10 US cents at Tuesday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Wednesday dropped 52 points, or 0.69 per cent, at 7,468.5
* The broader All Ordinaries closed down 46.8 points, or 0.6 per cent, to 7,702.7
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 67.03 US cents, from 67.10 US cents at Tuesday's ASX close
* 97.01 Japanese yen, from 96.58 Japanese yen
* 61.31 Euro cents, from 61.27 Euro cents
* 52.75 British pence, from 52.68 pence
* 107.38 NZ cents, from 107.49 NZ cents
Wrap
