Sydney, Feb 26, 2026, 04:55 AEDT — Market closed
- S&P/ASX 200 closed at a record 9,128.30 on Wednesday, up 1.2%.
- January CPI ran hotter than expected; trimmed-mean inflation ticked up to 3.4%, keeping May hike bets elevated.
- Woolworths jumped 13%, WiseTech rose 11%, and miners hit a fresh high with Fortescue results in focus.
Australian shares closed at a record on Wednesday, with the S&P/ASX 200 (.AXJO) up 1.2% at 9,128.30 after touching 9,130.30 earlier in the session. The benchmark had finished little changed on Tuesday, then caught a bid as miners hit a record and investors chased results, lifting Woolworths (WOW.AX) 13% and pushing the tech sector up 5.9%. “The market is focused on earnings today, not CPI,” said Hayden Beamish, a portfolio manager at Endeavor Asset Management. (Indo Premier)
The inflation print was the spoiler that didn’t quite spoil it. Australia’s CPI rose 0.4% in January and held annual inflation at 3.8%; trimmed-mean inflation — a core gauge that strips out the biggest price moves — rose to 3.4%. Markets lifted the implied chance of a quarter-point Reserve Bank of Australia hike in May to about 80% from 76% before the data, after the numbers pushed bond futures down and firmed the Australian dollar. “The Reserve Bank’s preferred trimmed mean measure was still too high for its liking,” said Stephen Smith, a partner at Deloitte Access Economics. (Reuters)
RBA Governor Michele Bullock later urged caution, saying policy judgements were “more difficult now” and that patience was needed, with the economy close to balance and inflation high but not “taking off again”. The tone sat awkwardly with the renewed rate-hike chatter that followed the CPI surprise. (Reuters)
Woolworths did much of the work on the day. The grocer reported a 16% rise in first-half underlying net profit to A$859 million and pushed its full-year outlook toward the top end of its “mid-to-high single digits” growth range as shoppers responded to price cuts. “It has been a very promotionally intense period,” CEO Amanda Bardwell told analysts, adding customers wanted “reliable value”. Rival Coles (COL.AX) reports on Friday, a near-term check on whether the price war is shifting share or just squeezing margins. (Reuters)
WiseTech Global (WTC.AX) climbed 11.1% to A$47.74 after saying it will cut about 2,000 jobs in a two-year overhaul that leans harder into artificial intelligence. Chief executive Zubin Appoo said some projects that once took six or seven months can now be done in a day, and that “the era of manually writing code … is over”. Global X ETFs strategist Marc Jocum said recent weakness in the stock had been “more governance-driven than fundamental” after the company reaffirmed guidance. (Reuters)
In materials, Fortescue (FMG.AX) posted a 23% jump in first-half profit to $1.91 billion on record iron ore shipments and higher realised prices, and declared a 62 Australian cent interim dividend — a 65% payout. The miner also flagged efforts to tighten shipment scheduling using AI. “Our products are moving well,” said Metals and Operations chief executive Dino Otranto on the results call. (Reuters)
The mix matters because the ASX 200 still leans heavily on banks, miners and a handful of big defensives. Those names can ride out higher borrowing costs better than housing-linked stocks or consumer discretionary, where rate sensitivity is less forgiving.
Global leads now sit closer to the steering wheel for the next session, with a tech rally running into Nvidia’s earnings and oil trading near a seven-month high on Iran tensions. That can shift the mood for Australia’s tech and energy pockets quickly, even when local news is quiet. (Reuters)
But there is a clean downside case. If inflation proves sticky — particularly in rents, power bills or wages — rate markets will keep dragging the RBA back toward tightening, and equity valuations have to adjust. In that scenario, the consumer names leaning on discounts may find it harder to keep winning.
For now, traders in Sydney are watching whether earnings beats keep outrunning rate fears. Coles’ half-year report on Friday, Feb. 27 is the next key catalyst for grocery pricing and a read on household demand.
