Australian shares fell 1.1% by midday following higher-than-expected inflation data for May, which showed a 4% annual increase. The real estate sector, the worst performer, dropped 2.4% as traders anticipated a possible rate hike by the Reserve Bank in August. Financials, led by major banks, declined by 1.5%, with Commonwealth Bank falling 1.6% to $124.92. NAB’s economics team now expects the RBA to delay the first rate cut until May 2025, forecasting a steady rate reduction to 3.10% by mid-2026.

On Wall Street, tech stocks surged, driven by Apple, Amazon, and Tesla, while Micron Technology fell nearly 6% after disappointing sales forecasts. The Federal Reserve announced that all 31 US banks passed the annual stress test, indicating their readiness to withstand a severe recession.

In focus, Baby Bunting’s shares soared 23% to $1.52 after reporting improved sales and a positive profit forecast despite ongoing challenges like the rental crisis and declining birth rates. Southern Cross Media rejected a takeover bid from Australian Community Media for some of its broadcast assets, citing misalignment with its audio strategy. Additionally, Qatar is in talks to acquire up to a 20% stake in Virgin Australia, amidst a stalled ASX float process.