ASX marks two-day slide as coal stocks crumble

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Shares notched their biggest one day decline since early January as the Reserve Bank of Australia again boosted its forecast for core inflation.

a $337 million parcel of Whitehaven Coal shares had been sold at a 7.5 per cent discount in late Thursday afternoon trade with sources pointing to fund manager GQG Partners as the most likely seller.Declines pushed the SP/ASX 200 to a 0.8 per cent loss, representing the index’s biggest one-day dip since early-January..

Traders took early direction from Wall Street’s fizzling rally as investors adjusted for the prospect of higher US interest rates.in response to a strong December quarter CPI number. Trimmed mean inflation is now expected to fall to 4.3 per cent by the end of the year, compared with the central bank’s previous forecast of 3.8 per cent.

“Confirmation of an upward revision to the RBA’s near-term underlying inflation forecasts help explains the Bank’s recent hawkish tilt,” BetaShares chief economist David Bassanese, referencing governor Lowe’s

 

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