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Yesterday, our local market advanced 1.7%, its best gain in around three weeks, again supported by a strong session in the US on Tuesday, after profit results from some well-known companies came in better than expected.
We also heard from RBA Governor Phillip Lowe, who said he expected the RBA to lift the cash rate to 2.5%, but whether that eventuates, as well as how quickly that may happen “will be determined by the inflation outlook”, with the next inflation update due out next Wednesday.
Sectors wise, all eleven industry sectors were in the green. The best performing sector was tech, followed by materials and real estate.
Megaport (ASX:MP1) was the biggest gainer, up 23% yesterday, following it delivering EBITDA profit in the fourth quarter, a first for the company. Paladin Energy (ASX:PDN) lifted 10.5%, after its management decided to restart one of its mines due to strong uranium market fundamentals. On the flip side, the biggest decliners yesterday were NIB Holdings (ASX:NIB), Pendal Group (ASX:PDL) and Perseus Mining (ASX:PRU).
Moving to the US, all three benchmarks closed higher, boosted by a tech rally. Streaming giant Netflix surged after it reported it had lost 970,000 subscribers in the second quarter, which was less than the 2 million it had previously projected. Investors had been awaiting this earnings season for an indication on how companies are coping with the worst inflation in more than 40 years. So far, 12% of S&P500 companies have reported earnings, with 68% beating analyst expectations.
What to watch today:
Trading Central has a bullish signal on BrainChip (ASX:BRN) indicating that the stock price may rise from the close of $1.13 to the range of $1.24 – $1.28 in the next 30 days according to standard principals of technical analysis.