ASX200: Futures Point Northwards ahead of PMI Numbers from China and the FED

RBA Monetary Policy

In line with market expectations, the RBA stood pat on monetary policy. Weighing on the ASX200, however, was a more hawkish outlook on monetary policy. Upbeat sentiment towards the economy and higher inflation suggested that the RBA may make a move earlier than the previously projected 2024.

This was reflected in the RBA’s decision to discontinue the target of 10 basis points for the April 2024 Australian Government Bond.

The Market Movers

It was a mixed day for the banks. Westpac slid by 2.73% as the markets continued to react to earnings. ANZ (-1.10%) also saw red, with NAB (-0.88%) and CBA (-0.50%) also struggling.

Macquarie Group ended the day down by 1.53%.

Commodity stocks also had a bearish session. Fortescue Metals Group Ltd (-2.65%), Rio Tinto (-2.54%), BHP Group (-2.34%) saw red, with Newcrest Mining falling by 1.43%.

Other Asian Markets

The Hang Seng fell by 0.22%, with the CSI300 ending the day down by 1.04%. There was little on the day to shift the mood from supply chain issues and weak overseas demand for Chinese goods.

The Day Ahead

It’s a quieter day ahead on the Asian economic calendar. Building approvals from Australia are due out. We don’t expect the numbers to influence, however.

Ahead of the housing sector data, employment figures from NZ will draw interest, however. From China, the Caixin Services PMI for October will provide direction.

Away from the economic calendar, corporate earnings and commodity prices will need monitoring.

The Futures

In the futures markets, at the time of writing, the ASX200 was up by 71 points.

For a look at all of today’s economic events, check out our economic calendar.