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ASX down 1.58%: US PPI comes in hotter than expected

Australian shares declined by 1.1% early in the trading session, mirroring losses in New York, as concerns over US inflation data suggested a cautious approach by the Federal Reserve towards rate cuts. Energy stocks were the sole gainers following a surge in oil prices, with Woodside seeing a modest increase. However, major banks experienced a downturn prompted by UBS downgrading NAB, Westpac, and CBA due to valuation risks, while US treasury yields surged after higher-than-expected producer prices, raising concerns about inflationary pressures.

At 11:30am, the S&P/ASX 200 is 1.58 per cent lower at 7,592.00.

The SPI futures are pointing to a fall of 122 points.

Best and worst performers

The best-performing sector is Energy, up 0.42 per cent. The worst-performing sector is Consumer Discretionary, down 2.39 per cent.

The best-performing large cap is EBOS Group (ASX:EBO), trading 1.21 per cent higher at $35.07. It is followed by shares in Santos (ASX:STO) and ResMed (ASX:RMD).

The worst-performing large cap is Pilbara Minerals (ASX:PLS), trading 5.16 per cent lower at $3.955. It is followed by shares in Meridian Energy (ASX:MEZ) and Mineral Resources (ASX:MIN).

Commodities and the dollar

Gold is trading at US$2164.80 an ounce.

Iron ore is 2.6 per cent lower at US$104.35 a tonne.

Iron ore futures are pointing to a 1.7 per cent fall.

One Australian dollar is buying 65.68 US cents.