Key Takeaways

• Australian inflation remains stubbornly high. Annual headline inflation rose to 4.3% in September, while underlying inflation increased to 3.6%, reinforcing concerns that progress towards the RBA’s target has stalled.

• A Melbourne Cup Day rate rise looks increasingly likely. Higher inflation plus Governor Bullock calling inflation ‘far too high’, has firmed expectations of a fifth rate rise next week to 4.85%.

• The US Fed held rates steady. The Federal Reserve maintained rates at 3.75–4.00%, although two policymakers voted for an immediate increase. Markets expect another hike in December.

• Big Tech’s AI investments face scrutiny. Microsoft, Alphabet, Amazon and Apple report this week, a key test of the AI trade after…