On Wall Street, discretionary consumer stocks rose more than 4% as a group, up 10 percent from the 11 S&P 500 industries. Real estate fell.
Information technology, finance and communication services were each at least 2% higher. The VIX fell 3 percent to 27.50.
In a note, Bank of America said: “The market is still putting a price on the Fed to reach a terminal at 3% or more by mid-2023, which is the scenario we incorporate into our recent rate forecasts. .
“However, we have recently seen a faint but noticeable change in Fed communications, with some Fed officials suggesting the option of lowering or pausing at the end of the year, as they reach 2 percent. given the challenging macro context, tightening financial conditions and potentially softening inflation. “
An additional highlight overnight was the news of Broadcom’s $ 61 billion deal to buy VMware.
Quincy Krosby, chief stock strategist at LPL Financial, said the acquisition “suggests that value is being created as the market recalibrates” the lowest valuations, particularly in the technology sector.
Today’s agenda
Local: Retail in April at 11.30 am AEST
Data Abroad: NZ May Consumer Confidence; China’s industrial profits April at 11:30 a.m. AEST; UK May nationwide house prices; April US personal income, PCE spending and basic deflator, May consumer sentiment
Market highlights
ASX futures rose 69 points or 0.97 percent to 7,176 near 6:30 a.m. AEST
- AUD + 0.07% to 70.94 US cents
- Bitcoin -0.9% to $ 29,446.96 at 6.35 a.m. AEST
- A Wall St: Dow + 1.6% S&P 500 + 2% Nasdaq + 2.7%
- New York: BHP -0.4% Rio + 0.3% Atlassian + 2.6%
- Tesla + 7.4% Apple + 2.3% Amazon + 4% NYSE Fang + 5.8%
- In Europe: Stoxx 50 + 1.7% FTSE + 0.6% CAC + 1.8% DAX + 1.6%
- Cash -0.2% to $ 1,849.83 at 1:50 p.m. in New York
- Brent crude + 2.9% to $ 117.32 a barrel
- US oil + 3.4% to $ 114.06 a barrel
- Iron ore -1.6% to $ 131.25 per tonne
- 2-Year Yield: US 2.47% Australia 2.34%
- 5 year yield: US 2.70% Australia 2.93%
- 10 year yield: US 2.74% Australia 3.20% Germany 0.99%
- US prices at 4.28pm in New York
United States
Broadcom said it will acquire cloud computing company VMware in a $ 61 billion cash and stock deal, the chip maker’s biggest and boldest bid to diversify its business software business.
Billionaire Elon Musk was sued by Twitter investors alleging that he manipulated the company’s stock price down.
Macy’s raised its annual earnings forecast, helped by strong demand for high-end consumer clothing returning to weddings and other social events, even as hot inflation slows consumer purchasing power.
A report from the U.S. Department of Commerce showed that US GDP fell at an annualized rate of 1.5% last quarter amid a record trade deficit and a sequential decline in the rate of inventory accumulation. . The economy grew a robust 6.9% in the fourth quarter.
Separately, weekly jobless claims fell to 210,000 last week, consistent with a tight labor market despite rising interest rates and tightening financial conditions.
“For a forward-looking market, the thought is that we’re close to the bottom in terms of the kind of news we receive and maybe prices have already discounted the slowdown we’re seeing,” said Rick Meckler, Cherry Lane partner Investments in New Vernon, New Jersey.
“The data is raising hopes for a favorable pivotal potential by the end of this year.”
Europe
The pan-European STOXX 600 index closed up 0.8% for the second consecutive session. Earnings were largely broad, with retailers up 4.7 percent.
UK retailers Ocado, Marks & Spencer, Next and Associated British Foods rose between 4.4% and 11.5% on news of a € 15 billion home support package from the Boris government Johnson.
Luxury stocks also rose, with LVMH, owner of Louis Vuitton, up 3.7%, the biggest boost to the STOXX 600.
Fund managers expect the STOXX 600 to reach 450 points by the end of the year, 3.5% higher than current levels, according to a Reuters poll.
Goods
GF Futures hoped that iron ore prices would be driven mainly by demand for steel products in the near term and that iron ore prices would continue to fluctuate before consumption improved.
The most traded iron ore futures on the Dalian Commodity Exchange for September delivery fell 4.1 percent to 806 yuan (US $ 119.99) per tonne, the lowest since 19 May. They fell 0.8 percent to 834 yuan per ton. ton at the end.
Dalian coking coal prices fell 0.7% to 2,473 yuan per tonne and coke futures fell 0.2% to 3,256 yuan per tonne.
The steel bar of construction material on the Shanghai Futures Exchange, for October delivery, rose 0.2 percent to 4,505 yuan per tonne.