New home sales on the up ahead of Melbourne Cup

Australia: 

HIA new home sales rose 2.7% in September following a 6.1% increase in August.

Sales remain at a very high level, and point to still strong activity within housing construction.

Producer prices edged 0.1% higher in the September quarter for an annual gain of 1.0%. Much like consumer prices, it suggests that price pressures remain very subdued.

Share Markets: 

Investor sentiment was supported earlier in the session by strong GDP data, but reversed later on news of the FBI's reopened investigation of Clinton's emails.

The Dow slipped 0.1%, the S&P 500 lost 0.3% and the Nasdaq was off 0.5% for the session.

Interest rates: 

US government bond yields fell, particularly at the short end, as political uncertainty drove safe haven flows into government bonds.

The yield on 10-year bonds fell 1 basis point to 1.85% and the yield on 2-year bonds fell 3 basis points to 0.85%.

Foreign Exchange:

The US dollar index fell on news of the FBI investigation into Clinton's emails, closing 0.6% lower.

The Euro rose, with EUR/USD up from 1.0893 Friday morning to currently trade at 1.0988.

The US dollar also lost ground against the Yen, with USD/JPY falling from a high of 105.53 following the US GDP data, to a low of 104.27 earlier this morning.

AUD/USD initially fell to 0.7559 post-GDP but rebounded to 0.7604 early Saturday morning.

Commodities:

The oil price declined by US$1 to US$48.70 per barrel amid concern over whether OPEC will implement supply cuts.

Europe:  

German inflation rose 0.2% in October, which was in line with consensus expectations. For the year to October, CPI increased 0.8%, up from 0.7% in the year to September.

The EU harmonised measure of CPI in Germany rose 0.7% in the year to October, up from 0.5% in the year to September.

This was the highest inflation reading in two years, although inflation remains well below the ECB's 2% inflation target.

The final reading on Euro zone consumer confidence held at -8.0 for October, up slightly from -8.2 in September.

Japan: 

The jobless rate edged down from 3.1% to 3.0% in September the lowest in more than 20 years.

Meanwhile, Japan remains stuck in deflation. National CPI contracted for the sixth consecutive month on an annual basis, falling 0.5% in the year to September.

United Kingdom: 

GfK consumer confidence fell to -3 in October, from a reading of -1 in September.

United States: 

US GDP jumped to 2.9% (annualised) in Q3, up from 1.4% in Q2. This was the strongest quarterly increase in GDP in two years.

The stronger than expected increase in GDP was driven by a rebound in inventories and exports.

Exports growth contributed the most to GDP since Q4 2013. Growth in domestic demand (which excludes exports and inventories) slowed to 1.4% (annualised) in Q3, from 2.4% in Q2.

Consumer spending rose 2.1% in Q3, down from 4.3% in Q2, and missing consensus expectations.

The employment cost index rose by 0.6% in Q3.

Within that benefits jumped 0.7%, which was the largest rise for several years, but does tend to be more volatile.

Wages and salaries rose just 0.5%, which was the slowest growth since Q4 last year,- leaving the underlying "core" part of wages very subdued.

The final reading on University of Michigan consumer sentiment fell to 87.2 for October, from an earlier estimate of 87.9. This is down from 91.2 in September.



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