Market Wrap / Chalmers' call

Risk on sentiment dominated the market as the government delivered its last budget before the election; as inflation came in slightly lower than expected; and as the S&P/ASX 200 received Wall Street tailwinds.

The local market ended this Wednesday 0.71% higher at 7999 points. 

The budget’s biggest surprise was the extension of tax cuts for workers, coupled with expected deficits for the next decade. 

Economists at the Big Four banks concurred that the 2025/26 budget will not impact monetary easing. Shares in all of them closed in the green, with ANZ leading the pack and gaining 3%. 

Inflation came within the RBA target band for the seventh consecutive month, CPI rose 2.4% in the 12 months to February, slightly below consensus. 

The consumer staples stocks reacted positively throughout the day, with Woolworths and Coles both advancing over 1%.

Mining and energy players were overall in the green. Although Paladin dropped 11.6% as it withdrew its 2025 guidance following production disruption. 

Overnight, energy investors will look at the US crude inventory, expected to lower.

Tomorrow, Eagers Automotive and IPD group are among companies trading ex-dividend.