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

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