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Derek Rose

Aust shares close lower despite US inflation easing

The ASX has lifted 0.2 per cent for the week, as midweek gains outweighed losses Monday and Friday. (Dan Himbrechts/AAP PHOTOS)

The local share market has edged lower after central bankers in Australia and the United States tried to temper expectations cooling inflation meant their work raising rates was done.

The S&P/ASX200 index on Friday fell 17.3 points, or 0.24 per cent, to 7,340.1, while the broader All Ordinaries dropped 14.3 points, or 0.19 per cent, to 7,554.2.

For the mostly quiet week, the ASX200 rose 14.8 points or 0.2 per cent, after last week snapping a three-week winning streak.

Overnight the US Labor Department dropped inflation figures markets across the world had been waiting on for days, reporting US consumer prices rose 3.2 per cent in the 12 months through to July, slightly under expectations of 3.3 per cent.

But San Francisco Fed official Mary Daly poured cold water on growing optimism the central bank would leave rates unchanged next month, telling an interviewer it was too soon to say its work was done.

"Whether we raise another time, or hold rates steady for a longer period - those things are yet to be determined," Daly told Yahoo Finance.

"There's a lot of information coming in between now and our next meeting."

Closer to home, Reserve Bank governor Phil Lowe had a similar message for the House of Representatives' economics committee on Friday, saying it was possible rates might need to rise further to return inflation to target.

“Whether or not this is the case will depend upon the data and the (bank) board’s evolving assessment of the outlook and risks,” Mr Lowe said in his last appearance at the committee before deputy Michele Bullock replaces him next month.

RBC Capital Markets chief economist Su-Lin Ong said Mr Lowe erred modestly dovish in his discussions with lawmakers and she continued to predict the RBA would hike rates one final time this cycle, possibly in the fourth quarter.

The ASX's 11 sectors finished mixed, with energy the biggest mover, falling 1.9 per cent as talk died down of a potential strike by Western Australia offshore gas workers. 

Woodside dropped 2.0 per cent to $38.22, Santos fell 1.6 per cent to $7.92 and Whitehaven Coal dropped 3.0 per cent to $7.23.

Retailers gained after furniture retailer Nick Scali posted a record profit of $101.1 million as revenue increased 15.1 per cent to $507.7 million.

While managing director Anthony Scali cautioned trading during the year had been "variable and challenging" as sentiment soured in line with interest rate hikes, NCK shares surged 13.4 per cent to a six-month high of $12.12.

Adairs rose 5.3 per cent to a two-month high of $1.805, JB Hi-Fi rose 2.5 per cent to a six-month high of $47.21 and Harvey Norman jumped 3.2 per cent to a five-month high of $3.87.

Elsewhere, Star Entertainment soared 18 per cent to a two-month high of $1.15 after the casino owner was granted a reprieve from sky-high poker machine taxes for the next seven years.

"You can't collect tax from a dead business," NSW Treasurer Daniel Mookhey told reporters, arguing the tax scheme devised by the previous Perrottet government would have shuttered Star's Sydney casino.

The Big Four banks had a quiet day, with ANZ the biggest mover, dipping 0.2 per cent to $25.35.

In the heavyweight materials , Boral grew 4.6 per cent to $4.96 after the building and construction materials supplier reported its underlying full-year profit had quadrupled to $142.7 million, with CEO Vik Bansal reporting clear improvement across the entire business.

Newcrest dropped 0.4 per cent to $25.85 after the goldminer announced its full-year profit for 2022/23 was down 11 per cent to $US778 million, in what will likely be its last set of earnings results before its acquisition by New York Stock Exchange-listed Newmont Corp.

Among the big iron ore miners, BHP edged 0.1 per cent lower at $45.73, but Fortescue Metals dropped 2.2 per cent to $21 and Rio Tinto fell 0.6 per cent to $109.

The Australian dollar was buying 65.25 US cents, from 65.57 US cents at Thursday's ASX close.

ON THE ASX:

* The S&P/ASX200 index finished Friday down 17.3 points, or 0.24 per cent, at 7,340.1.

* The All Ordinaries dropped 14.3 points, or 0.19 per cent, to 7,554.2

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 65.25 US cents, from 65.57 US cents at Thursday's ASX close

* 94.40 Japanese yen, from 94.33 Japanese yen

* 59.36 Euro cents, 59.55 Euro cents

* 51.35 British pence, from 51.45 pence

* 108.52 NZ cents, from 107.92NZ cents.

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