The Australian share market is lower following a soft lead from the US and stronger than expected inflation figures.
The market is down around a quarter of a per cent, which follows solid gains on Tuesday.
CommSec market analyst Steven Daghlian said the market had started lower following falls on Wall Street, where sentiment was weighed down by disappointing business spending figures and nervousness ahead of a US Federal Reserve Meeting.
Meanwhile, Mr Daghlian said the release of Australian Bureau of Statistics inflation figures had reduced expectations of an interest rate cut next month.
While the figures showed annual headline inflation of 1.7 per cent, which was weaker than expected, underlying inflation was stronger than anticipated at 2.25 per cent.
“Last week the market was pricing in a 28 per cent chance of a rate cut in February and now that’s down to about 12 per cent, so that’s dropped off in the wake of the CPI.
In the resources sector, global miner BHP Billiton was three cents higher at $28.98, Rio Tinto added 19 cents to $56.99, and Fortescue Metals fell four cents to 2.04.
Oz Minerals added eight cents to $3.52 after it beat its full year production guidance and launched a strategic review of its operations.
But Bradken shares slumped $1.47, or 36 per cent, to $2.64 after a private equity consortium withdrew its takeover offer for the engineering group.
Among the banks, Commonwealth Bank fell 26 cents to $87.37, Westpac lost four cents at $34.52, National Australia Bank retreated five cents to $35.10, and ANZ descended four cents to $32.53.
Rail operator Aurizon climbed eight cents to $4.88 after it re-affirmed its full year rail volumes guidance despite a decline in coal and iron ore volumes in the December quarter.
Telstra lost three cents to $6.40.
KEY FACTS
* At 1220 AEDT on Wednesday, the benchmark S&P/ASX200 index was down 13.2 points, or 0.24 per cent, at 5,534 points.
* The broader All Ordinaries index was down 12.9 points, or 0.23 per cent, at 5,498.6 points.
* The March share price index futures contract was down eight points at 5,483 points, with 14,039 contracts traded.
* National turnover was 643 million securities worth $1.7 billion.
