Hi Waterglobe, to answer your question from the pre-market...

Hi Waterglobe, to answer your question from the pre-market thread, yes, I would expect bank stocks to rally if CPI is strong and therefore increases the odds on a rate rise next month. Rate rises are seen as broadly favourable to banks because customers are theoretically more inclined to save, which reduces bank borrowing costs. And as you say, the banks are keen to increase rates anyway to recoup what they claim are rising borrowing costs.

Conversely, retail stocks like DJS, HVN and MYR are likely to fall in this scenario because rate rises leave less spending money in consumers' pockets. However, if CPI is weak and rates are likely to be left on hold, then retail stocks might bounce.

Note, the above is a very broad and brief picture of the situation - nothing in economics is quite this straight-forward!