Markets rally ahead of US CPI data

13Sep

Markets rally ahead of US CPI data

 

US equities were higher in uneventful Monday trading, ending just off best levels. S&P and Nasdaq both up for a fourth-straight day, extending last week's rally that broke three-straight weekly declines.

The market was fairly quiet from a headline perspective, with focus tightly on tomorrow's August CPI report and expectations for a month on month headline decline.

The Dow Jones Industrial Average gained 0.71 per cent, The S&P 500 rose 1.06 per cent. The Nasdaq Composite added 1.27 per cent,

Some recent developments, including a weakening US dollar and military success by Ukraine, appear to be boosting investor sentiment. Many traders are also optimistic about the August consumer price index report, which is scheduled for release on Tuesday morning.

Energy was the top performing sector, but the rally was broad. Oil majors, credit cards, autos, retail, homebuilders, tech hardware, airlines, trucking among best performers. Semis, steel, social media, biotech,, fertiliser, solar among laggards. 

Reuters is reporting that the Department of Commerce is to announce next month additional restrictions on sale of semiconductors for AI and chipmaking tools to China. Its expected the Commerce Department will publish new regulations based on restrictions communicated in letters earlier this year to Applied Materials, Nvidia and Advanced Micro Devices.

Sources told Reuters the regulations would likely include additional actions against China and that the agency plans to add additional Chinese supercomputing entities to a trade blacklist. One source said the rules could also impose licence requirements on shipments to China of products that contain the targeted chips.

Over the past several years, supply chain disruptions in power grids, semiconductors, and the Suez Canal have taught us about the under-the-radar industries that keep the economy functioning.

In the US another major supply chain interruption could be around the corner. Starting today, US railroads said they would delay shipments of some materials in advance of a potential strike by more than 90,000 rail employees. A strike would halt all activity along the US’ 140,000-mile rail network with the US economy expected to lose $2 billion every single day that trains aren’t moving

Currencies

$US Dollar index was weaker with biggest declines on commodity crosses, pushing the $A higher buying 68.91 US cents (Mon: 68.35 US cents), 58.99 Pence Sterling, 98.42 Yen and 68.07 Euro cents.

Bitcoin futures up 5.2 per cent, back above $22K.

Commodities

Gold jumped 0.7 per cent and silver rallied over 5.8 per cent on Monday bolstered by a weaker dollar, while investors awaited key inflation data for cues on the pace of interest rate hikes by the US central bank.

Copper added $4.25 or 1.2 per cent to US$361 a pound.

Oil prices rose on Monday as Iranian nuclear talks appeared to hit obstacles and an embargo on Russian oil shipments loomed, with tight supply struggling to meet still robust demand.
Oil gained $0.99 or 1.1 per cent to US$87.78 a barrel.

Futures

The SPI futures are pointing to a 0.6 per cent gain.

Figures around the globe

Across the Atlantic, European markets closed higher. Paris gained almost 2 per cent, Frankfurt jumped 2.4 per cent and London’s FTSE closed 1.7 per cent higher.

In Asian markets, Tokyo’s Nikkei added 1.2 per cent while Hong Kong’s Hang Seng and China’s Shanghai Composite were closed.

Yesterday, the Australian sharemarket gained over 1 per cent to close at 6965.

Ex-dividends

There are eight companies set to trade without the right to a dividend.

FOS Capital (ASX:FOS) is paying 0.5 cents fully franked
Grange Resources (ASX:GRR) is paying 2 cents fully franked
IVE Group (ASX:IGL) is paying 8 cents fully franked
Inghams Group (ASX:ING) is paying 0.5 cents fully franked
News Corp (ASX:NWS) is paying 10.0908 cents unfranked
Objective Corp (ASX:OCL) is paying 6 cents unfranked
PSC Insurance (ASX:PSI) is paying 7.5 cents 60 per cent franked
TPG Telecom (ASX:TPG) is paying 9 cents fully franked

Dividends payable

There are five companies set to pay eligible shareholders today.

Domain Holdings Australia (ASX:DHG)
Eumundi Group (ASX:EBG)
GUD Holdings (ASX:GUD)
Pengana Capital Group (ASX:PCG)
SRG Global (ASX:SRG)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Copyright 2022 – Finance News Network


Source: Finance News Network

Share this post

Related Posts

14Sep

Vaccine hopes boost local market: Aus shares close 0.7% higher

14 Sep 2020 -The Australian share market has had a positive start to the week finishing the session higher led by resources stocks on the back of higher iron ore and base metals prices.

Read More
29Dec

Wall St hits record high as Trump signs aid bill: ASX poised to open higher

29 Dec 2020 - The ASX looks set to open higher this morning following leads from Wall Street and Europe. In the US President Donald Trump has signed the Covid relief and government funding bill days after he suggested he would block it. All of Wall Street's main indexes touched record levels.

Read More
10Mar

Global market sell-off deepens: ASX set to plummet

10 Mar 2020 - It looks like the ASX will extend losses this morning as the global economy remains uncertain about the spread of the coronavirus. The market is set to open lower. The Dow sank more than 2,000 points yesterday – that was its worst day since 2008. Oil has plunged adding to the double whammy hitting the markets. Ramelius Resources (ASX:RMS) started ore haulage from its 100% owned Marda Gold Mine to its Edna May Processing Facility.

Read More
16Jun

Best day for the market in two months: ASX closes 3.9% higher

16 Jun 2020 - It has been a positive day of trade for the ASX. The local bourse managed to close 3.9% higher. All the sectors ended the day in the green. Energy closed the day the highest with Viva Energy pushing up the sector, rising over 15% after a profit upgrade. Cedar Woods (ASX:CWP) is pleased to advise that it has extended the tenure of its $30m finance facility for the Williams Landing Shopping Centre in Melbourne.

Read More
01Aug

Wall St rises on disappointing GDP growth, Marley Spoon serves mixed results, Why Flight Centre is a hold: ASX poised to edge higher

30 Jul 2021 - Global stocks rallied as earnings season continued amid positive economic data in Europe, though mixed numbers in the U.S. Asian markets climbed after their recent panic selling. Coverage of U.S. GDP and jobless claims, Biden’s vaccine requirement & tech titan’s mandate. Earnings figures from Yum Brands, Pinterest & Robinhood’s underwhelming debut. Marley Spoon (ASX:MMM) plated mixed results. Why UBS rates Flight Centre (ASX:FLT) as a hold.

Read More
02Nov

Amidst the gloom, oil stocks are reporting record profits

02 Nov 2022 - US equities finished mostly lower in Tuesday trading, as traders assessed better-than-expected economic data and prepared for another likely rate hike from the Federal Reserve. Profits at two of the world’s largest oil producers soared as BP and Saudi Aramco reaped a windfall from historically high energy prices that have fuelled inflation and stoked a global cost of living crisis.

Read More
10Jan

Tech stocks lift in hopes that inflation may be easing

10 Jan 2023 - Gains in technology helped the Nasdaq Composite skirt losses on Monday as traders added to bets that inflation may be easing. The Nasdaq was the only major index to end the day up as it got boosted by a nearly 6 per cent rally in Tesla shares.

Read More
18Mar

Unemployment rate fell to 5.8% in February: ASX 0.3% lower at noon

dd Mmm 2021 - The ASX opened almost flat, roller-coastering between falls and gains and is now tracking 0.3% lower at noon. The S&P/ASX 200 index is 18 points at 6,777. The SPI futures are pointing to a fall of 12 points as we head into afternoon trade. Despite the Dow and S&P 500 hitting record highs last night, the local market has been unable to follow the lead from US markets. Meanwhile, the Westpac Group (ASX:WBC) will sell...

Read More
14Jan

President Trump impeached for the 2nd time: ASX closes 0.4% higher

14 Jan 2021 - It has been a positive day of trade for the ASX. After opening higher, the market slightly dipped and then rallied throughout the day to end 0.4% higher. Over in the US, President Donald Trump was impeached by the House of Representatives for the second time.

Read More
29Jan

Record quarterly sales revenue for Lynas (ASX:LYC): Aus shares 0.8% higher at noon

29 Jan 2021 - The Australian market opened higher following positive leads from Wall Street and continues to rise in early trade. Healthcare and Industrial stocks are leading the charge this morning. The S&P/ASX 200 index is 54 points up or 0.8 per cent higher at 6,704 at noon. Shares in Lynas Rare Earths (ASX:LYC) jumped this morning after it announced that sales revenue rose to a record $119.4 million in the December quarter.

Read More