6:44 AM · 25 October 2023

Morning Wrap (25.10.2023)

  • Chinese stocks rallied after Beijing took stronger action to support the world’s second-largest economy, spurring hopes that the market’s rout may ease.
  • Japanese and Korean stocks linked to China's consumer and manufacturing demand initially surged, pushing an Asian equity benchmark towards its best finish in a week, though gains later diminished.
  • China’s President Xi expressed willingness to manage differences with the US and jointly address global challenges.
  • Japanese Leading Indicator Change was revised to an actual 1.0%.
  • Japanese Chain Store Sales Year-over-Year (YoY) reported at 3%.
  • Australia's Treasurer Chalmers noted that while inflation is moderating, it remains persistent in Australia.
  • Australian CPI figures: 
    • Month-over-Month (MoM) at 0.30%.
    • Year-over-Year (YoY) at 5.4%, slightly above the forecast of 5.3%.
    • Reserve Bank of Australia (RBA) Weighted Mean CPI YoY at 5.2%.
    • Quarterly CPI at 1.2%, above the forecast of 1.1%.
  • US American Petroleum Institute (API) stock changes: 
    • Gasoline: -4.169M barrels.
    • Distillate: -2.313M barrels.
    • Cushing: +0.513M barrels.
    • Crude Oil: -2.668M barrels, against a forecast of +1.55M barrels.

Australia's CPI data comes in slightly above expectations. The Australian dollar is strengthening following the release of the new report. Investors now estimate a higher probability for an interest rate hike at the RBA's November 7 meeting.

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