The market is expected to open higher this morning with the ASX SPI 200 Futures trading up 0.32% or 26 points to 8,230.
Australia’s monthly inflation figures are due to be released at 11:30am.
NAB expects headline CPI of 2.7% year on year, down from 3.5% as electricity subsidies and fuel base effects drive the lower print, "with gradual but ongoing progress expected across other parts of the basket, including market services".
The bank wrote: "We expect the detail to be consistent with our Q3 trimmed mean expectation of 0.8% q/q, which would see the year-ended rate fall to 3.5% from 3.9% y/y in Q2, in line with the RBA's forecast.”
US markets
On Wall Street, the Dow Jones and S&P 500 indexes hit fresh record closing highs overnight, overcoming weak US consumer confidence data.
The Dow Jones index rose by 84 points or 0.2%, the S&P 500 index gained 0.3%, for its 41st record close, and the Nasdaq index added 100 points or 0.6%.
Mining stocks jumped after China unveiled a sweeping stimulus package. Copper and lithium miners rose with materials shares up 1.4%. -
- Freeport-McMoRan (NYSE:FCX) rose 7.9%;
- Southern Copper added 7.2%;
- Albemarle advanced 2%; and
- Arcadium Lithium climbed 3.2%.
US-listed shares of Chinese firms such as Alibaba (NYSE:BABA) rose 7.9% and PDD Holdings added 11.2%.
The Philadelphia SE semiconductor index was up 1.3% as Nvidia surged 4% on reports its CEO was done selling shares.
Visa (NYSE:V) lost 5.5% after the US Department of Justice sued the company for alleged antitrust violations. This weighed on the financial sector which slipped 0.9%.
US government bond yields fell on Tuesday after a gauge of US consumer confidence slumped, adding to the case for another half-point interest-rate cut by the Federal Reserve next month.
The US Treasury sold US$69 billion of two-year notes at a yield of 3.52% into solid demand. The US 10-year Treasury yield fell by 1 point to 3.73% and the US two-year Treasury yield dipped 3 points to 3.54%.
European markets
European sharemarkets ended higher on Tuesday after China's central bank unveiled broad stimulus measures to aid its ailing economy. Basic resources led sectoral gains, jumping 4.4%, its biggest single-day gain in over 22 months, as base metal prices advanced on improving China demand prospects.
- The continent-wide FTSEurofirst 300 index rose 0.7%.
- In London, the UK FTSE 100 index gained 0.3%
Currencies
Currencies were stronger against the US dollar in European and US trade.
- The Euro rose from US$1.1104 to session highs near US$1.1180 at the US close.
- The Aussie dollar lifted from US68.14 cents to US68.93 cents and was near US68.90 cents at the US close.
- The Japanese yen firmed from 144.66 yen per US dollar to JPY143.13 and was near JPY143.15 at the US close.
Commodities
Global oil prices climbed 1.7% to a three-week high on Tuesday on news of monetary stimulus from China, the world's top importer, and concerns that conflict in the Middle East could hit regional supply while another hurricane threatened supply in the US.
- The Brent crude price rose by US$1.27 or 1.7% to US$75.17 a barrel.
- The US Nymex crude price climbed US$1.19 or 1.7% to US$71.56 a barrel.
Base metal prices advanced on Tuesday.
- Copper futures jumped 3.3% to a 10-week high after China unleashed wide-ranging stimulus measures to boost its flagging economy.
- Aluminium futures gained 3.2%.
The gold futures price rose US$24.50 or 0.9% to US$2,677 an ounce on Tuesday. Spot gold was trading near record highs at US$2,657 an ounce at the US close, building on its recent rally as Middle East tensions fed its safe-haven appeal.
Iron ore futures climbed US28 cents or 0.3% to US$91.88 a tonne on Tuesday, as a wave of fresh monetary stimulus from China boosted steel and property market sentiment.
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