AU Morning Wrap: ASX Lifts 0.5% as US Stocks Rally on Hopes Rate Peak Near
G'day, mooers! Check out the latest news on today's stock market!
• Nasdaq hits fresh five-month high, Fed less hawkish than expected
• ASX lifts 0.5% as US stocks rally on hopes rate peak near
• Stocks to watch: Imugene, Credit Corp, QBE Insurance
- Moomoo News AU
• Nasdaq hits fresh five-month high, Fed less hawkish than expected
• ASX lifts 0.5% as US stocks rally on hopes rate peak near
• Stocks to watch: Imugene, Credit Corp, QBE Insurance
- Moomoo News AU
Wall Street Summary
US stocks swung higher after the Fed indicated the top of the current rates cycle was near and a soft landing for the economy was achievable.
The $S&P 500 Index(.SPX.US$ rallied 43 points or 1.05 per cent after initially plunging almost 1 per cent at the prospect of "ongoing" rate hikes. The $Nasdaq Composite Index(.IXIC.US$ soared 232 points or 2 per cent. The $Dow Jones Industrial Average(.DJI.US$ swung from a 500-point loss to a slender gain of seven points or 0.02 per cent.
The US central bank raised its benchmark rate as expected by 25 basis points to a range of 4.5–4.75 per cent. Stocks briefly sold off when the accompanying rate statement reiterated the need for "ongoing increases" and Chair Powell said the bank had "more work to do" to reach its 2 per cent inflation target. Policy was not yet "sufficiently restrictive".
AU Market Watch
$S&P/ASX 200(.XJO.AU$ rose 0.54 per cent with almost every sector posting gains. Tech stock led, gaining 2.4 per cent while energy dragged, down 1 per cent as oil prices slumped.
Oil prices fell the most in about a month as government data showed US crude inventories swelled to the highest levels since June 2021.
ASX biotech $Imugene Ltd(IMU.AU$ led the gainers, adding 7.1 per cent, alongside $Credit Corp Group Ltd(CCP.AU$ and $Seek Ltd(SEK.AU$. $QBE Insurance Group Ltd(QBE.AU$ fell 4.7 per cent.
Stocks to Watch
$Droneshield Ltd(DRO.AU$: Drone detection and security software group DroneShield's seeking to capitalise on investor interest in the company, offering new shares via stockbrokers Peleton Capital and Bell Potter on Thursday.
DroneShield stock went into a trading halt in pre-market open, as the brokers launched a raising worth $9 million to $11 million.
$ASX Ltd(ASX.AU$: Vicki Carter and Luke Randell will join the ASX as non-executive directors as the exchange seeks to "refresh talent, skills and experience" of its board.
The pair will stand for election at ASX's annual general meeting in October.
$Pinnacle Investment Management Group Ltd(PNI.AU$: Pinnacle Investment Management reported a 24 per cent decline in half-year profit and shrinking performance fees after the market close on Wednesday, hurt by challenging equity market conditions and domestic investors switching into cash.
Profit for the half year fell to $30.5 million from $40.1 million in the prior corresponding period.
$ANZ Group Holdings Ltd(ANZ.AU$: ANZ's high-profile head of Australian economics has left the bank, joining global hedge fund firm Millennium.
David Plank will join UK-based Greg Knight's team who runs macro, rates and strategy as a fixed income economist.
Commodities
• Oil plunged to a three-week low after US stockpiles increased for a sixth week, implying weak demand. The Energy Information Administration said US inventories increased by 4.1 million barrels, rising above 450 million barrels for the first time since June 2021.
"Numbers from the EIA showed surprising builds across the board," Tariq Zahir, managing member at Tyche Capital Advisors, told MarketWatch.
Brent crude settled US$2.62 or 3.1 per cent lower at US$82.84 a barrel.
• Iron ore declined for a second session in China after breaking above US$130 a tonne earlier in the week when trade resumed after the Lunar New Year. The most active May ore contract on the Dalian Commodity Exchange dropped 0.7 per cent in daytime trade to 867 yuan (US$128.51) a tonne.
• Gold rallied in post-Fed trade after initially settling lower. Gold for April delivery was lately up US$14.90 or 0.77 per cent at US$1,960.20 an ounce.
Earlier, the yellow metal settled US$2.50 or 0.1 per cent lower at US$1,942.80 an ounce. Prices took off as the greenback and US treasury yields slumped. The NYSE Arca Gold Bugs Index rallied 2.5 per cent.
Source: Dow Jones Newswires, AFR
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