ASX slips as inflation points to rate hike

Australian shares have snapped a three-session winning streak after hotter-than-expected inflation numbers ratcheted up bets on an incoming interest rate hike.

The S&P/ASX200 fell 7.7 points on Wednesday, down 0.09 per cent, to 8,933.9, as the broader All Ordinaries dropped 17.9 points, or 0.19 per cent, to 9,250.6.

Local shares gave up a modest morning lift to slip lower in the afternoon, after yet another upside inflation surprise increased chances the Reserve Bank will lift the cash interest rate at its first 2026 meeting next week.

Ongoing US dollar weakness has supported oil and gold prices, pushing energy and materials stocks higher while the nine remaining local sectors fell behind, led by interest rate-sensitive segments.

Oil prices rise

Oil prices rose to their highest price since September, helping to lift energy stocks 2.3 per cent, tracking with strength in Santos and Woodside, as Woodside posted a record year of production.

Uranium stocks outperformed the top-200, with names like Paladin and Deep Yellow up more than 5 and 10 per cent, respectively, after Deep Yellow slashed its cost guidance.

Gold miners helped the materials sector advance 1.4 per cent, as the precious metal clocked a new US$5,260 ($A7,520) an ounce record on the back of a US dollar retreat, as silver flirted with its recent peak above $US117 ($A167) an ounce.