FEAR & GREED | Business News Afternoon Report | ASX drops as inflation jumps
Oct 29, 2025
Markets took a hit as the ASX fell by one percent following an unexpected rise in inflation. Woolworths reported a boost in sales, while Nick Scali also saw impressive gains. In a renewed debate, Scott Morrison critiqued strict net zero timelines, advocating for a tech-driven approach to emissions reduction. Meanwhile, CBUS faces a $23.5 million penalty for mishandled claims affecting its members. On a different front, Hurricane Melissa wreaked havoc in Jamaica and is now heading toward Cuba.
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Inflation Shock Halts Rate-Cut Expectations
- The ASX 200 fell about 1% after a surprise jump in underlying inflation, crushing rate-cut hopes.
- Big banks and rate-sensitive sectors like real estate and healthcare led the sell-off, showing markets price in RBA moves quickly.
Watch Retail Sales For Market Signals
- Monitor retail and consumer sales as leading indicators for stock moves in supermarket and retail names like Woolworths and Nick Scali.
- Use quarterly sales trends and currency/cost shifts to reassess positions quickly after earnings updates.
Commodities: Weather And Prices Drive Big Swings
- Commodity producers remain highly exposed to weather and price swings, as shown by Atlas Iron's profit hit from cyclonic weather and lower ore prices.
- Conversely, miners with strong production updates or favourable currencies, like Boss Energy and Ansell, can rally sharply on operational beats.