Global markets surged overnight, propelled by better-than-anticipated inflation data and updates on US tariff plans. This positive momentum is expected to carry over to the ASX, with futures pointing to a higher open. The cooling inflation figures suggest a less aggressive Federal Reserve, boosting investor confidence and driving market gains.
US Markets
US stocks rose Thursday as inflation data and U.S. tariff updates eased market concerns.The Dow Jones Industrial Average gained 0.77% to 44,711.43, the S&P 500 climbed 1.04% to 6,115.07, and the Nasdaq Composite jumped 1.50% to 19,945.64.
Tech stocks led gains, with Nvidia up 3.2%, AppLovin soaring 24% on earnings, and Tesla rising 5.9%.
The producer price index (PPI) rose 0.4% in January, exceeding estimates, while core PPI met forecasts at 0.3%. Despite the uptick, traders anticipate a softer PCE price index, the Federal Reserve’s key inflation measure.
The 10-year Treasury yield fell 10 basis points to 4.531% following the data release.
Australian market
Australian shares are poised to follow Wall Street higher, with ASX futures indicating a positive start to the trading day. The SPI futures are pointing to 0.97% rise.
Australian Dollar
The Australian dollar held near a three-week high at US63.17¢, after rebounding 0.6% overnight. A move above US63.30¢ would mark its highest level since 18 December. It was set to finish the week with a 0.7% gain.
Company News
Cochlear increased its interim dividend by 8% to $2.15 per share. However, the company cautioned that full-year profit would likely be at the lower end of its guidance range.
Global Lithium Resources lost its battle against a group of shareholders with alleged Chinese interests. This development underscores the ongoing complexities and challenges in the global lithium market.
Unibail-Rodamco-Westfield increased its distribution by 40% following strong operating performance. This positive result highlights the resilience of certain sectors in the current economic environment.
