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US equities closed higher again on Wednesday as Treasury yields continued to decline, and investors await the release of the latest inflation data out on Thursday US time. The Dow Jones industrials index rose 0.19%, the S&P500 added 0.43% and the tech-heavy Nasdaq rose 0.71%. The latest slate of US inflation data will be released on Thursday with economists expecting a rise of 0.3% on the previous month and 3.6% annually. Producer price index in the US rose 0.5% for September which was higher than economists were expecting but a decline from the 0.7% rise reported in August. The latest FOMC meeting minutes also eased investor sentiment on Wall St overnight with signals that just one more interest rate hike may be needed in this monetary tightening cycle to ensure inflation remains under control in a downward trend toward the target 2% reading.
Over in Europe, markets closed mixed on Wednesday, a day after the markets reported the best session in 11-months. The STOXX600 added 0.2% on Wednesday driven by food and beverage stocks while retail stocks fell 2.1%. Germany’s DAX rose 0.24% on Wednesday, while the French CAC fell 0.44% and, in the UK, the FTSE100 lost 0.11%.
Shares in luxury brands retailer LVMH group fell over 6% after reporting a slowdown in growth.
Locally yesterday, the ASX200 rose just shy of 0.7% led by the tech sector jumping 1.7% while consumer discretionary and industrials stocks added 1.23% and 1.12% respectively. All 11 sectors closed the midweek session higher for a second consecutive session. Talks of a Chinese stimulus package worth at least 1 trillion yuan for spending on infrastructure to further stimulate the economic recovery in the world’s second largest economy. These reports boosted local miners’ yesterday amid the outlook for higher demand of Australian produced commodities, especially iron ore.
Qantas shares rallied almost 2% on Wednesday after chairman Richard Goyder agreed to leave the embattled airline’s board next year, while Telstra shares came under pressure after the telco giant announced plans to buy Versent, a cloud consulting company, for $267.5m in a bid to further its cloud business expansion and digitisation.
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