The local market is set for a modest rise at the open with ASX futures up 15 points, or 0.21% at 9am AEDT.
In focus today is monthly key inflation data that should offer insights into the future direction of interest rates in Australia.
Overnight, while speaking on a panel in Hong Kong, the RBA's Michele Bullock said households were "doing fine" and coping with the rate hikes. She said the 13 rate rises since May last year had created "political noise," but conceded they had left borrowers "unhappy”.
In a note to clients, ANZ said, “Bond and equity markets rallied overnight as investors become more confident that the Federal Reserve may be in a position to drop rates next year. Markets locally should see similar moves, but the focus will be on the monthly CPI.”
Overseas markets
US stocks posted small gains following a strong consumer confidence report and on hopes that the Federal Reserve is finished with its aggressive interest rate hikes.
The Dow Jones index rose by 83.5 points or 0.2%, the Nasdaq index added 41 points or 0.3% and the S&P 500 index gained 0.1%. The benchmark S&P 500 is on track to close out November with its strongest monthly gain of the year.
Comments from US Federal Reserve officials lifted market sentiment and supported hopes of a potential interest rate cut. The Fed is confident that policy is well positioned to slow consumer confidence in November after three straight monthly declines.
Boeing (NYSE:BA) led the Dow Jones index higher, adding 1.4% after RBC Capital Markets upgraded the aerospace company to "outperform" from "sector perform".
The S&P 500 index got a lift from gold producer Newmont, which gained 6.3%, as bullion prices hit more than six-month highs. But Micron Technology (NASDAQ:MU) shares fell 1.8% after the chip firm said it expected first-quarter operating expenses to be higher than its prior estimates.
Meanwhile, European markets ended lower. The continent-wide FTSEurofirst 300 index fell by 0.3% and in London, the UK FTSE 100 index dipped 0.1%.
Commodities
Global oil prices jumped 2% on Tuesday on the possibility OPEC+ will extend or deepen supply cuts, a storm-related drop in Kazakh oil output and a weaker US dollar. The Brent crude price rose by US$1.70 or 2.1% to US$81.68 a barrel. The US Nymex crude price gained US$1.55 or 2.1% to $76.41 a barrel.
Base metal prices rose on Tuesday. Copper futures gained 1% as news of disruptions at major mines in Panama and Peru raised supply concerns. Aluminium futures added 0.2%.
The gold futures price rose by US$27.60 or 1.4% to US$2,040 an ounce. Spot gold was trading near US$2,041 an ounce at the US close. Iron ore futures fell by US2 cents or less than 0.1% to US$130.40 a tonne.
Looking ahead
In Australia, the monthly consumer price index (CPI) indicator is released with construction work done data.
Fisher & Paykel Healthcare releases earnings. AGMs are hosted by EML Payments (ASX:EML), Emeco, Harvey Norman, Lynas Rare Earths, Sandfire Resources and Temple & Webster. GrainCorp, Infratil, Liberty Financial and Newmont all trade ex-dividend.
On the small cap front
The S&P ASX Small Ordinaries closed up 0.95% yesterday, while the ASX 200 gained 0.39%.
You can read more about the following throughout the day.