US markets hit new highs on Fed rates guidance

US markets continued to rally with the S&P 500, Nasdaq and Dow Jones index all closing at new highs after the Fed reaffirmed its intention to cut rates at least 3 times this year.

The S&P 500 closed up 0.9 per cent to finish above the 5,200 level for the first time. The Nasdaq Composite closed up 1.3 per cent, and the Dow Jones rose 1 per cent, to finish at a record high.

Turning to US sectors, consumer Discretionary & Communications were the best performers best performer closing up over 1 per cent. The worst performing sector was healthcare closing down 0.23 per cent.

As expected the Fed left interest rates unchanged and gave the market an additional boost by saying that it plans to cut rates three times before the end of the year. However, the Fed also tempered expectations by flagging that it still needs more evidence in the short term that inflation is easing.

The financial & big tech stocks were the big winners on the Fed announcement and guidance with American Express closing up 2.8 per cent, while the S&P Regional Banking ETF closing up 3.4 per cent.

In the tech sector Alphabet, Amazon, Microsoft, Apple and Nvidia all rallied to close around 1 per cent higher with Meta closing 2 per cent higher.

In other news shares in Paramount Global rose 10 per cent following a report that Apollo Global Management has offered $11 billion for Paramount’s film and TV studio businesses

On the economic front, NZ fourth quarter GDP is due to be released today and overnight the Bank of England will release its policy decision. In the US existing home sales and the March Philly Fed index are also due out overnight.

In local markets today, Brickworks, Sigma Healthcare and Washington H Soul Pattinson are expected to release earnings results. And in economic data, Labour force numbers for February are due out at 11.30am with the market looking for the unemployment rate to fall with solid gains in employment numbers for February

Futures

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

Currency

One Australian dollar at 8.10am was buying 65.87 US cents.

Commodities

Gold gained 1.24 per cent. Silver added 2.11 per cent. Copper rose 0.31 per cent. Oil dropped 2.14 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE lost 0.01 per cent, Frankfurt gained 0.15 per cent, and Paris closed 0.48 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei was closed, Hong Kong’s Hang Seng added 0.08 per cent and China’s Shanghai Composite added 0.55 per cent..

Yesterday, the Australian share market closed 0.10 per cent lower at 7,695.76.

Ex-dividends
Cochlear Limited (ASX:COH) is paying 200 cents 70 per cent franked
CUE Energy Resource (ASX:CUE) is paying 2 cents unfranked
K & S Corporation (ASX:KSC) is paying 10 cents fully franked
Pm Capital Fund (ASX:PGF) is paying 5 cents fully franked
Peet Limited (ASX:PPC) is paying 1.5 cents fully franked
PRL Global Ltd (ASX:PRG) is paying 2.5 cents fully franked
Pacific Smiles Grp (ASX:PSQ) is paying 2.1 cents fully franked
Spark New Zealand (ASX:SPK) is paying 12.7119 cents unfranked
Service Stream (ASX:SSM) is paying 2 cents fully franked
Tourismholdings (ASX:THL) is paying 4.2222 cents 21.25 per cent franked

Dividends payable
Accent Group Ltd (ASX:AX1)
Air New Zealand Ltd (ASX:AIZ)
Deterra Royalties Ltd (ASX:DRR)
Hansen Technologies Ltd (ASX:HSN)
Ingenia Communities Group (ASX:INA)
Jupiter Mines Ltd (ASX:JMS)
oOh media Ltd (ASX:OML)
Shaver Shop Group Ltd (ASX:SSG)
SkyCity Entertainment Group Ltd (ASX:SKC)
Smartgroup Corporation Ltd (ASX:SIQ)
Sonic Healthcare Ltd (ASX:SHL)
Tabcorp Holdings Ltd (ASX:TAH)
Vulcan Steel Ltd (ASX:VSL)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

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