ASX 200 lifts 1.2%, Aussie holds steady

The news: The ASX 200 benchmark index lifted 1.21% to 7,297.7, echoing positive performances on the S&P 500, Nikkei and Hang Seng indices. The Australian dollar overcame a short-lived dip to finish mostly flat for the day at 64.8 US cents. CPI data came in lower than expected at 4.9% for the year to July, narrowing odds of an interest rate pause at Philip Lowe's final RBA board meeting as governor next Tuesday.

The numbers: Almost all sectors finished the day in the green, except communications services and utilities, which recorded modest losses. Industrials (+2.14%), health care (+1.81%), IT (+1.63%), consumer staples (+1.46%) materials (+1.44%), real estate (1.18%), and financials (+1.11%) all lifted more than 1%. Brambles added 7.07% to its share price after price rises bolstered results, while Boral lost 8.15% after Kerry Stokes' Seven Group liquidated a 1% piece of the construction materials company, reducing its stake to 71.6%.

The context: Harvey Norman and Bank of Queensland will post results tomorrow. US preliminary GDP data and non-farm employment change will be released overnight and China's manufacturing PMI will follow at 11:30am AEST tomorrow.