Thanks @shovel40, @Fiji1 and morning crew. Half-time wrap:...

Thanks @shovel40, @Fiji1 and morning crew.

Half-time wrap:

Aussie shares swept higher after a decline in the RBA's preferred measure of inflation appeared to stave off the threat of further rate hikes.

The ASX 200 doubled its initial rise following the mid-morning report, extending its gain to 95 points or 1.2% at the halfway mark. Energy producers and rate-sensitive property and tech stocks led a charge that brought the index briefly within 30 points of its all-time closing high.

The rally ignited after underlying inflation as measured by the annual trimmed mean declined for a sixth straight quarter. The measure eased to 3.9% from 4% in the March quarter. Headline annual inflation edged up to 3.8% for the June quarter from 3.6% in the first three months of the year, as expected by economists.

Stocks rose as traders bet the absence of negative surprises frees the Reserve Bank to leave the cash rate target on hold this month and consider rate cuts later in the year, in line with other major central banks.

"And just like that all talk of RBA hikes are a thing of the past - the RBA can now fall closer inline with other G10 CBs and relief for those, like me, who have borrowed far too much - we can revert back to the obsession of timing the start of easing," tweeted Chris Weston, head of research at Pepperstone.

The dollar fell below 65 US cents. The yield on 10-year Australian government bonds plunged almost 14 basis points to a six-week low.


Personal trading: Picked the wrong day to be cautious. The only stock I bought has traded once since 10.30. Groan.