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ASX this week: Australia's inflation and commodity prices

ASX this week: Australia's inflation and commodity prices

Australia's inflation data for the September quarter, which will be released on Wednesday, is an important indicator for investors to gauge whether the central bank might cut the official cash rate next week.

Australian shares were little changed last week, with the S&P/ASX 200 index falling 3.7 points, or less than 0.1%, over five days to 5,430.3.

On Friday:

  • Brent oil rose 0.8% to US$51.78 a barrel, paring its weekly loss to 0.3%
  • WTI crude climbed 0.8% to US$50.85 a barrel; up 1% for the week
  • Iron ore with 62% content delivered to Qingdao, China, dropped 0.2% to US$58.72 a dry metric tonne; up 2.5% for the week
  • Spot gold traded at US$1,266.46 an ounce; up 1.2% for the week
  • Australian dollar traded at 76.08 US cents, weakening 0.1% over the week; the currency was little changed at 76.05 US cents at 10:40am Sydney time on Monday

What to watch this week

The Australian Bureau of Statistics will publish the nation's inflation data for the three months to September, which could have the most bearing on the local share market this week.

The Consumer Price Index, to be released on Wednesday, might have climbed 0.4% in the third quarter, according to CommSec.

"We believe that price pressures are generally contained," said CommSec. "Results in line with our forecasts don't provide the 'smoking gun' needed to justify another rate cut."

The board of the Reserve Bank of Australia will meet on November 1 to set their monetary policy for the country.

Meanwhile, gains in commodity prices have been on the radar in recent weeks, and could continue to impact markets, CommSec noted.

"Coal, iron ore and oil prices have been lifting, but agricultural prices aren't being left behind," it said.

The US earnings reporting season continues with Apple and Google slated to report their financial results this week.

Stock movers

Below are the five best- and worst-performing ASX 200 stocks for the week ended Friday, October 21.

Company/Index

ASX code

Weekly price change

Infigen Energy

IFN

+19%

Tatts Group

TTS

+15.1%

Independence Group

IGO

+10.4%

Syrah Resources

SYR

+10.4%

Bellamy's Australia

BAL

+9.5%

S&P/ASX 200

XJO

-0.07%

Spotless Group

SPO

-11.3%

Aconex

ACX

-12.3%

Crown Resorts

CWN

-15.7%

Skycity Entertainment Group

SKC

-18.9%

Healthscope

HSO

-19.3%

Past performance is not a reliable indicator of future performance. Source: Bloomberg

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. The inclusion of companies in this article does not constitute a recommendation and it’s vital to remember that the value of shares in any company can fall as well as rise, which means you could lose money by investing in them. Investors should consult a range of resources, and if necessary, seek professional advice, before making investment decisions in regard to their objectives, financial and taxation situations and needs because these have not been taken into account. Any securities or prices used in the examples given are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not indicative of future performance. Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 and a Participant of the ASX Group and Chi-X Australia.