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6 things Australian traders will be talking about this morning

Sam Jacobs, Gina Heeb

Good morning.

To the scoreboard:

  • Dow: 26,145.99 +147.07 (+0.57%)
  • S&P500: 2,904.18 +15.26 (+0.53%)
  • AUD/USD: 0.7190 +0.0021 (+0.29%)
  • ASX SPI futures (September contracts): 6,158 (+27)

1. US Stocks jumped overnight after US inflation missed forecasts, while there was renewed optimism on emerging markets and US China trade talks. The US dollar fell, and Treasury yields inched higher.

2. Consumer prices in the US rose less than expected in August. The consumer price index increased 0.2% last month, compared with economist expectations for a 0.3% rise, as increasing energy prices were offset by declines in apparel and healthcare costs.

3. The Central Bank of Turkey surprised the market, raising interest rates by 625 basis points to 24%. It underscored the central bank's intent to remain independent of Turkish President Recep Tayyip Erdogan, a self-proclaimed "enemy" of interest rates. The Turkish lira jumped by 4% against the greenback:

4. The US and China plan to head back to the negotiating table. Chinese officials were receptive of an invite from the US to hold further discussions, but markets reacted to a tweet from President Trump which was less optimistic about a deal.

5. Citing uncertainty over Brexit, the Bank of England held rates steady at 0.75%. Separately, the European Central Bank kept policy unchanged and confirmed plans to end a large scale bond-buying program this year.

6. Global oil supply hit 100 million barrels a day for the first time in August, the US Energy Information Administration said, despite falling output in several OPEC member countries. Crude prices slipped by more than 2% overnight after briefly hitting $US80 a barrel earlier this week.

Here's a look at the key events on today's data calendar (via Westpac):

Have a great weekend.