Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
Wall Street Ends Mixed as Micron Surges, Apple Drops After Price Hikes 
Oil Prices Rebound as Strait of Hormuz Tensions Return After Ship Attack Near Oman 
China Expands Export Controls, Adds 20 Japanese Companies to Restricted List 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
SpaceX Eyes Starlink Mobile Phone Service to Challenge Verizon, AT&T, and T-Mobile 
Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
US Dollar Slips After PCE Inflation Data Eases Fed Rate Hike Expectations 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Australia’s Inflation Falls to Three-Year Low Amid Government Rebates
In the third quarter of 2024, Australian inflation dropped to its lowest level in three and a half years, driven by government subsidies on electricity and declining petrol prices. Data from the Australian Bureau of Statistics revealed that the Consumer Price Index (CPI) rose by 0.2%, slightly under the 0.3% forecast. Annual inflation now stands at 2.8%, down from 3.8%, aligning with the Reserve Bank of Australia's (RBA) 2-3% target range for the first time since 2021.
Key Drivers of Lower Inflation
Electricity prices saw a significant decrease of 17.3% due to government rebates, while petrol costs dropped by 6.2% in the third quarter. For September alone, CPI rose by a modest 2.1% year-on-year, marking the slowest pace since July 2021.
Sticky Core Inflation and RBA’s Policy Outlook
While headline inflation shows improvement, core inflation, measured by the trimmed mean, rose by 0.8% in the quarter, slightly above the projected 0.7%. However, the annual core inflation rate eased to 3.5% from 4.0%. Despite signs of cooling, services inflation remained high at 4.6%, with minimal change from the prior quarter’s 4.5%.
The RBA has maintained its current policy rate at 4.35% since November, assessing it as sufficiently restrictive to guide inflation to its target without harming employment growth. With the next rate review set for Tuesday, the central bank will consider its updated economic forecasts.
