Happy Hump Day!
Good day on the boards following a strong rally in the US overnight.
We wonder how many shorts have been squeezed here…and if a Santa rally is on the cards.
What do you think?
The Australian sharemarket hit its highest level in eight weeks on Wednesday, buoyed by the latest US inflation report which bolstered speculation that interest rates might have peaked in the world’s largest economy.
The S&P/ASX 200 index advanced 99.2 points, or 1.4 per cent, to 7105.9 at the closing bell. The All Ordinaries gained 1.5 per cent even as local data pointed to the fastest rate of wage growth on record for the series in the third quarter at 1.3 per cent.
The Australian dollar also surged above US65¢.
Stocks rallied around the globe after the US Consumer Price Index rose 3.2 per cent over the year through October, down from the 3.7 per cent in September and August. Compared with the prior month, prices in October were flat – the last time that happened was July 2022.
The data buoyed Wall Street, sending the tech-heavy Nasdaq up 2.4 per cent on Wednesday and the S&P 500 climbed 2.1 per cent to 4503, its highest in more than two-months.
On the ASX, 10 of the 11 industry sectors finished in the green, led by the interest rate sensitive real estate sector, which jumped 4.6 per cent. Sector heavyweight Goodman rallied 3.4 per cent to $23.55, Stockland added 6.1 per cent to $4.03, and Scentre gained 5.1 per cent to $2.70.
The mining giants were among the best performers after Singapore iron ore futures hit $US130 a tonne for the first time since March on improving demand for steel in China, which is considering a new wave of stimulus to shore up its struggling property sector.
Bloomberg reported Beijing plans to provide at least 1 trillion yuan ($137 billion) of low-cost financing to the nation’s urban village renovation and affordable housing programs.