Investing.com reports that Australia's Q3 CPI inflation beat expectations, rising 7.3% year-on-year, the highest level since 1990. This has led to speculation that the Reserve Bank of Australia (RBA) may be more aggressive in raising interest rates at its upcoming meeting on November 1.
The RBA has already raised interest rates six times in a row this year, in an effort to combat inflation. However, the strong Q3 CPI data suggests that the RBA may need to do more to bring inflation under control.
This news could have a significant impact on the Australian stock market. If the RBA raises interest rates more aggressively than expected, it could lead to higher borrowing costs for businesses and consumers. This could dampen economic growth and lead to lower corporate earnings.
**Scoop: Dow futures tick higher, Microsoft gains 3.5%, Alphabet sheds 6.5% after earnings**
Investing.com also reports that Dow futures are ticking higher ahead of the open on Wednesday, October 25, 2023. This comes after a mixed day for corporate earnings on Tuesday.
Microsoft (MSFT) is one of the biggest gainers in pre-market trading, up 3.5%. The company reported strong earnings and revenue for its fiscal first quarter, beating analyst expectations.
Alphabet (GOOGL), on the other hand, is one of the biggest losers in pre-market trading, down 6.5%. The company reported earnings and revenue that were in line with analyst expectations, but investors were disappointed by the company's slowdown in revenue growth.
The mixed corporate earnings reports could make for a volatile trading day on Wednesday. Investors will be looking for signs of whether the corporate earnings season is on track to beat expectations