The local share market has inched lower ahead of the unveiling of the federal budget and the latest set of US inflation figures.
At noon AEST on Monday, the benchmark S&P/ASX200 index was down 8.2 points, or 0.11 per cent, to 7,740.4, while the broader All Ordinaries was down 9.6 points, or 0.12 per cent, to 8,013.1.
Treasurer Jim Chalmers will hand down his third budget on Tuesday, while the US Labor Department will announce last month’s consumer price increases on Wednesday night, Australian time.
Past readouts have driven markets globally as they are seen as a key factor in determining the pace of rate cuts this year. A number of Federal Reserve officials including chairman Jerome Powell are also scheduled to speak this week.
Meanwhile, NAB’s monthly business survey released Monday found that conditions eased in April, with trading, profitability and employment all back around their long-term averages.
“Overall, these signs of slowing activity and easing costs support the outlook for gradual improvement in inflation from here, but how quickly this occurs remains to be seen,” NAB chief economist Alan Oster said.
Seven of the ASX’s 11 sectors were higher at midday and four were lower, including the heavyweight mining and financial sectors.
Energy was the biggest mover, dropping 1.0 per cent as Woodside fell 1.1 per cent and Santos dipped 1.3 per cent.
In the financial sector, ANZ was down 3.1 per cent to $28.19 after the Australian Financial Review and The Australian reported that the corporate regulator was investigating allegations the bank’s traders manipulated the sale of government debt last year.
Westpac was down 0.2 per cent, NAB was up 0.2 per cent and CBA was ahead 0.5 per cent.
In the mining sector, BHP was up 0.3 per cent, while Fortescue had dropped 0.7 per cent and Rio Tinto had fallen 0.6 per cent.
Lithium companies were having a down day with Pilbara dropping 3.0 per cent, Liontown retreating 2.1 per cent and IGO 2.0 per cent lower.
Lendlease had fallen 4.0 per cent to $6.03 after the developer announced that the Australian Tax Office had assessed it $112.1 million in capital gains and interest following an audit related to the partial sale of its retirement living business in 2017/18.
Lendlease is disputing the $24.5 million in interest, saying the ATO told it in writing in 2020 that the agency wouldn’t apply interest or penalties to the 2018 financial year.
Fletcher Building was down 10.1 per cent to $2.895 after New Zealand’s biggest building company cut its 2023/24 earnings guidance, saying that market conditions in Australia and New Zealand had weakened throughout the financial year.
In Australia, Fletcher sells building products such as insulation, plasterboard, steel roofing and plastic piping, and said there had been a sharp correction in the Australian residential market that it expects will lead to a 10 per cent decline in revenue.
The Australian dollar was buying 65.99 US cents, from 66.12 US cents at Friday’s ASX close.