To the scoreboard:
- Dow: 24,874.64 +431.72 (+1.77%)
- S&P500: 2,682.63 +41.38 (+1.57%)
- AUD/USD: 0.7103 +0.0047 (+0.67%)
- ASX SPI futures (December contracts): 5,767 (-5)
1. It’s CPI day: All-important Q3 inflation data will be released by the ABS at 11:30am AEDT. The forecast is for core inflation to rise by 0.4% q/q, leaving annual growth at 1.9%. David Scutt’s 10-second guide has everything you need to know.
2. The US dollar index briefly hit a 16-month high overnight, helped by weakness in other major currencies. The euro fell after GDP data missed expectations, and the pound slipped after S&P Global warned a no-deal Brexit could lead a recession. The Chinese yuan also hit a new decade low.
3. Some risk-appetite returned to markets and US stocks climbed, as the S&P500 climbed out of a technical correction (10% falls) after weeks of heavy selling. As earnings season rolls on, General Electric fell by almost 9% after missing profit expectations and cutting its dividend to a penny.
4. The Aussie dollar “benefited from the rebound in US equities”, Westpac’s Sean Callow said. President Trump’s comments on China trade also helped provide a catalyst for the AUD, which rose back above US71 cents.
5. Figures from the US Treasury Department showed the US government is on track to issue $US1.338 trillion of debt in 2018, the highest level since 2010. Benchmark US 10-year bond yields edged higher overnight to around 3.12%.
6. And ANZ Bank reported full-year results this morning, with cash profits down 5% to $6.49 billion. CEO Shayne Elliott said the bank had focused on home loans to owner-occupiers rather than investor lending, a move which “sacrificed short-term revenue growth” but was “the right thing to do for shareholders”.
In addition to Australian inflation data, it’s a packed schedule on today’s economic calendar:
- Bank of Japan policy decision.
- China October manufacturing PMI.
- Eurozone October inflation data.
- US Q3 employment cost index and ADP private payrolls for October.
Have a great day.
Business Insider Emails & Alerts
Site highlights each day to your inbox.