Good morning fellow traders. The Australian sharemarket followed...

Good morning fellow traders.

The Australian sharemarket followed global stocks higher but the Australian dollar fell after consumer inflation came in well below forecasts.
Wall Street stocks rose 0.3 per cent, but the S&P/ASX 200 index climbed 50 points, or 0.87 per cent, to 5776.6 as rebounding commodity prices and the neutral interest rate outlook boosted sentiment.
Consumer price inflation slowed to 0.2 per cent over the June-quarter, half expectations, and at 1.9 per cent on an annual basis CPI was below the bottom of the Reserve Bank’s target range of between 2 per cent and 3 per cent.
The dollar fell US0.6¢ to US78.90¢, having hit a high of US79.70¢ last night as rate rise risks abated.
“Overall the June quarter CPI continues to highlight the lack of any broad inflationary pressures in the Australian economy,” Westpac economist Justin Smirk said.
“While core inflation has drifted up to just under the bottom of the RBA’s target band, on the back of a lift in housing cost, it is hard to see how it can accelerate much further without broader price gains.”
Government 10-year yields were up 3.4 points at 2.724 per cent after initially jumping 7 points following the 8 per cent spike in US 10-years last night to 2.34 per cent.
Bond yields rose ahead of the US Federal Reserve board meeting which is expected to see the Fed maintain its upbeat outlook and rate rise forecasts despite weakening data.
But in a speech, Reserve governor Philip Lowe explicitly pushed back against the notion of the Reserve blindly joining a global tightening cycle.
Spot iron ore jumped 2.2 per cent to $US69.48 a tonne yesterday and Singapore futures were up 1.5 per cent today.

U.S. stocks climbed modestly on Wednesday to record closing highs after the Federal Reserve kept interest rates unchanged and strong earnings reports from Boeing and AT&T.
The U.S. central bank's statement did not dramatically sway Wall Street's major indexes, which hit all-time peaks on a busy day of corporate earnings reports. A slide in financial shares held back gains for the S&P 500.
As broadly expected by investors, the Fed maintained its benchmark lending rate and said it was continuing the slow path of monetary tightening. It said it expected to start winding down its massive holdings of bonds "relatively soon" in a sign of confidence in the U.S. economy.
"The Fed decision of itself was fairly expected and had no real impact on the market," said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey. "But I think in a broader sense the willingness of the Fed to move cautiously has provided some protection against the market selling off."
The Dow Jones Industrial Average .DJI rose 97.58 points, or 0.45 percent, to 21,711.01, the S&P 500 .SPX gained 0.7 points, or 0.03 percent, to 2,477.83 and the Nasdaq Composite .IXIC added 10.57 points, or 0.16 percent, to 6,422.75.

Source;- Netwealth Morning Business Roundup.

It's World Scotch Whisky Day. Boy, I'm really looking forward to the After Market Lounge - hopefully we'll all have something to celebrate and not be drowning over sorrows in a glass.

Meantime, enjoy breakfast. Using up the leftovers in the fridge and serving up Bubble and Squeak.