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Favourable jobs data and easing treasury yields boosted Wall St to a positive close on Wednesday with the Dow Jones snapping a losing streak by adding 127 points or 0.4%, while the S&P500 rose 0.8% and the tech-heavy Nasdaq lifted 1.3%. US private payrolls data showed the economy added 89,000 private payrolls last month which was well below the forecasted 160,000 in a sign the tight labour market in the US is starting to ease.
Treasury yields also pulled back from 16-year highs with the 10-year Treasury yield trading at 4.729%. Mortgage demand data also released showed mortgage demand has fallen to its lowest level since 1996 as mortgage rates nearing 8% have decreased demand for the loans.
Investors are still on edge awaiting the release of non-farm payrolls data on Friday to gauge whether the labour market really is easing in the U.S.
Over in Europe, markets closed lower on Wednesday amid dampened global sentiment over rising interest rates and the outlook for inflation to remain stubbornly high. The STOXX600 fell 0.1% on Wednesday weighed down by oil and gas stocks sliding on the declining price of the commodities, while tech stocks closed 1.2% higher.
Locally on Wednesday, the ASX200 extended its red run, closing the session down 0.77% to an 11-month low as financial and communication services stocks weighed on the key index, while the utilities sector was the only sector to close the midweek session higher. The ASX has taken strong lead from the US over the first sessions of the week amid fears of a government shutdown in the world’s largest economy and the release of economic data signalling inflation remains sticky in the region.
Lithium takeover target Liontown Resources added 1% on Wednesday after Gina Rinehart further increased her stake in the near-term lithium producer, taking her holding to 14.7%
Biotech company Noxopharm soared 85% on Wednesday after announcing its CRO-67 preclinical drug candidate for the treatment of pancreatic cancer has been granted orphan drug designation status by the FDA in the US.
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