Markets Await Key Headlines for Direction

• The main theme last week was the ongoing US government shutdown, which has curtailed key data releases and kept volatility elevated. With limited direction from fundamentals, risk appetite has become more reactive to headlines and shifting geopolitical developments.
• US-China trade tensions remained in focus after Trump said the proposed 100% tariff on Chinese imports was “not sustainable,” sparking talk of a possible easing in his stance.
• Sentiment improved modestly on speculation of extended tariff pauses and potential further trade dialogue, though uncertainty remains elevated.
• Locally, it’s a quieter week ahead of the crucial Q3 CPI release on 29 October, a key input for the RBA’s next policy move.
• RBA Governor Bullock speaks on Friday, while markets will watch for any headlines from Prime Minister Albanese’s meeting with Trump in the US today.