UK wage growth comes in at 7.8% YOY

The UK unemployment rate

The market was expecting a UK unemployment rate this morning, but it wasn't released. Only wage growth came through which excludes bonuses, average hourly earnings rose 7.8% year-over-year (YoY), in line with expectations.

Reserve Bank of Australia

This is marginally down from the 7.9% rise last month, but still very high and raises questions on whether the UK government's consumer price index (CPI) target of 5% by year-end will be reached. Earlier in Australia, the Reserve Bank of Australia (RBA) Board remains concerned that inflation is not slowing as hoped, according to the RBA minutes, but at the same time considers there is not enough new information to warrant a rate hike. More would be available for the November meeting.

Figures on employment for September are due later this week, while the key inflation report for the third quarter is out on Oct. 25. New Zealand's inflation rate in the three months to September fell to 5.6%, a two-year low, from 6% in the second quarter. Economists expected 5.9%, while the Reserve Bank had forecast 6%. Consumer prices in September advanced 1.8% from three months earlier, less than the 1.9% median estimate.

The ZEW economic sentiment

In Germany, the ZEW economic sentiment is expected to rise to -9 in October after -11.4 in September. Over in the US, a few macroeconomic indicators are scheduled for this afternoon. Retail sales are expected to rise by 0.3% in the September month-over-month (MOM). Industrial production is forecast to stay unchanged in the September MOM. Business inventories are seen increasing by 0.3% in August.

Rio Tinto

Rio Tinto shares rose in Australia overnight as the miner reported an increase in its output across its portfolios. Iron ore shipment rose 1.2% in the third quarter as it ramped up production at the Gudai-Darri mine. It shipped 83.9 million metric tonnes of iron ore from Pilbara, compared with 82.9 million metric tonnes a year earlier. Rio maintains its full-year expectations for Pilbara shipments in the upper half of the 320 million to 335 million metric tonnes range. Copper output increased by 5%, and aluminium output rose by 9%.

Rolls Royce

Rolls-Royce has confirmed its plans to cut about 2,500 white-collar jobs as part of a major restructuring of the UK aerospace and defence company by its new chief executive, aimed at streamlining operations and boosting returns.

Bellway

Bellway said that customer demand continues to be affected by mortgage affordability constraints. The reservation rate has been reduced by 28.4%. This announcement came as Bellway reported full-year earnings. Underlying pretax profit fell 18% to £532.6 million. Bellway warned that given the reduction of its order book and lower reservation rates, there will be a'material' reduction in volume output this current year.

Bank of America and Goldman Sachs earnings

Over in the US, the street awaits Bank of America and Goldman earnings. Also before the US opening bell, Johnson & Johnson is expected to post a year-on-year decline in earnings and revenue. Earnings are seen falling 1.3% to $2.51 per share. Revenue is anticipated to reach $21.04 billion, down from $23.79 billion a year ago, as coronavirus cases and deaths have continued to wane. This report will be the first after the completion of the spinoff of its consumer health business, now called Kenvue.

Bitcoin

Bitcoin prices had a volatile day yesterday as cryptocurrency news platform Cointelegraph reported that the iShares Bitcoin ETF (BlackRock Group) had been approved. The news saw Bitcoin spike to a session high of $29900 while simultaneously dragging the crypto markets as a whole higher. On the stock market, Coinbase Global rose 2.4%, and crypto miners Marathon Digital and Riot Blockchain were up 5% and 3%, respectively.