Economic Calendar and News

This week’s economic agenda is set to include several pivotal events. The spotlight will be on Australia’s Consumer Price Index (CPI) for October, due to be published on Wednesday. This data has gained heightened significance as domestic factors now emerge as major inflation concerns for the Reserve Bank of Australia (RBA), although headline inflation is expected to reduce from 5.6% to 5.2%.

A quick note about how our CPI has been tracking: The annual CPI inflation rose by 6.0% in the June 2023 quarter, a drop from the 7.0% in March 2023 and 7.8% in December 2022. The trimmed mean inflation, which filters out extreme price variations, also saw a decrease to 5.9% from previous higher rates. The monthly CPI indicator in June 2023 showed a 5.4% year-on-year increase, signalling a gradual easing of inflationary pressures. Michelle Marquardt, ABS’s head of prices statistics, noted this was the lowest quarterly rise since September 2021, attributing it to price reductions in areas like domestic travel and fuel.

Additionally, the government is poised to introduce landmark legislation to overhaul the Reserve Bank, which would represent the most significant changes to the central bank since its establishment. The retail sector is also in focus, with expectations of a modest 0.2% growth in retail sales for October, down from 0.9% in the previous month.

In the United States, attention will turn to the Personal Consumption Expenditures (PCE) index for October. Predictions indicate a 0.3% month-over-month and a 3.5% annual increase in core inflation, with headline inflation expected at 0.1% monthly and 3.1% annually. Additionally, the market will closely scrutinise the first revision of the third-quarter GDP and the consumer confidence index for November.

Stocks on Watch

A variety of stocks are expected to be in the spotlight this week. The delayed OPEC+ policy meeting has investors on the edge regarding potential oil production cuts, which could significantly impact Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), and Woodside Energy (ASX: WDS).

Wednesday will see Fisher & Paykel Healthcare (ASX: FPH), a manufacturer and marketer of respiratory care products, announce its first-half results for the 2024 financial year, drawing attention to its post-COVID growth trajectory.

In the news is Tietto Minerals (ASX: TIE), a gold mining company expected to elaborate on its decision to reject a takeover bid from Hong Kong’s Zhaojin Mining.

Moreover, the U.S. earnings season continues with reports from Salesforce (NYSE: CRM), Crowdstrike Holdings (NASDAQ: CRWD), Dollar Tree (NASDAQ: DLTR), and Workday (NASDAQ: WDAY), among others.