The ASX is set to open lower this morning — the ASX futures are down 6 points, or 0.1%, at 7,099 at 8.45am AEDT.
The focus today is on the RBA, with governor Michele Bullock due to speak about monetary policy at the ABE Annual Dinner at 7.35pm AEDT in Sydney tonight.
Speaking on wages yesterday, Bullock said, “inflation is the crucial challenge over the next one to two years”. She explained that rapidly rising labour costs posed a challenge to the RBA as it battled to get inflation, currently 5.4%, back to its 2 to 3% target range.
Overseas markets
US markets fell overnight after the US Federal Reserve reiterated its cautious approach on interest rates. The Dow Jones index lost 63 points or 0.2%. The S&P 500 index also fell 0.2% and the Nasdaq index ended 85 points or 0.6% lower, both snapping a five-day winning streak.
US retailers’ downbeat corporate updates point to weak consumer spending sending the S&P 500 retail subindex down 1.2%.
US existing home sales fell by a more than expected 4.1% in October to the lowest level since 2010. The Chicago Fed national activity index fell from -0.02 in September to -0.49 in October.
Lowe's lost 3.1% after reducing its full-year sales outlook. Clothing retailer American Eagle tumbled 15.8% after weaker-than-expected operating income guidance for the full year. Best Buy dipped 0.7% after the electronics retailer said it expects a steeper drop in annual comparable sales, while Kohl's shed 8.6% on missing third-quarter sales estimates.
Amazon.com (NASDAQ:AMZN) shed 1.5% on news that former CEO Jeff Bezos may be selling more shares.
European markets were largely unchanged, with the FTSEurofirst 300 index ending flat, while the UK FTSE 100 index fell by 0.2% as the British pound firmed.
Commodities
Global oil prices were little changed on Tuesday, with investors cautious ahead of Sunday's OPEC+ meeting when deepening supply cuts are expected to be discussed due to slowing global economic growth.
The Brent crude price rose by US13 cents or 0.2% to US$82.45 a barrel. But the US Nymex crude price eased US6 cents or 0.1% to $77.77 a barrel.
Base metal prices rose — copper futures edged higher by 0.1% and aluminium futures gained 0.5%.
The gold futures price rose by US$21.30 or 1.1% to US$2,001.60 an ounce. Spot gold was trading near US$1,998 an ounce at the US close. Iron ore futures added US24 cents or 0.2% to a near nine-month high of US$129.55 a tonne on policy support for China's property sector and worries about possible supply disruptions.
Looking ahead
In Australia today, RBA governor Michele Bullock delivers a speech at 7.35pm AEDT. The leading index is issued. Webjet releases earnings. City Chic Collective, Downer EDI, Lovisa, Medibank Private, Netwealth, Pacific Smiles and Praemium all host AGMs. Nufarm shares trade ex-dividend.
On the small cap front
The S&P ASX Small Ordinaries closed up 0.40% yesterday, while the ASX 200 lost 0.28%.
You can read more about the following throughout the day.