Despite China being on a week’s holiday (golden week) the market was far from quiet. Mini shocks hitting financial markets last week included the ongoing concerns over Deutsche Bank contagion risk; speculation about the European Central Bank winding back their monetary policy stimulus (quantitative easing); rising expectations of an imminent US rate hike; cyclone Matthew, OPEC oil production cuts and renewed Brexit concerns. None seems powerful enough to derail our local market though.
The outcome of all this however has seen our Aussie lose ground against a stronger US dollar and yields drift higher. Financial markets continue to unwind expectations of a further rate cut from the RBA (though the moves over the last week have been minimal).
We also get the second televised debate between Trump and Clinton taking place this week which will gain some focus to see how the polls move given the negative publicity Trump has received over the last few days.