Australian shares are poised to rise as US tech powered higher and the Bank of Canada bolstered hopes for global rate cuts by cutting its key rate and signalling plans for another cut in July.
The S&P 500 rose 1.2 per cent to close at 5354.03, its 25th record high in 2024. The Nasdaq Composite leapt 2 per cent to a record 17,187.91.
In commodities iron ore slipped 0.3 per cent to $US107.10 a tonne. “The outlook for Chinese demand remains uncertain, with recent support measures by Beijing unlikely to activate new construction activity,” said ANZ Bank’s economics team.
In New York, Nvidia surged 5.2 per cent to lead the magnificent seven. Its market valuation reached $US3.01 trillion, surpassing Apple as the second-largest publicly traded company. Apple rallied 0.8 per cent to a $US3 trillion market cap.
The last time Nvidia was worth more than Apple was in 2002, five years before the first iPhone was released, according to Bloomberg. At the time, both companies were worth less than $US10 billion each. Nvidia’s stock has surged 147 per cent so far in 2024.
Microsoft holds the title as the market cap leader at $US3.15 trillion. Its shares rose 1.9 per cent.
The yield on the US 10-year note fell back below 4.30 per cent. It has tumbled more than 20 basis points in the last month amid a continuing debate on when the Federal Reserve will start to cut interest rates.
There were contrasting data points from the US overnight. The ADP Research Institute’s jobs data, which hasn’t been a reliable indicator for official payrolls, came in weaker than expected, Bloomberg reported. The Institute for Supply Management’s survey suggested that the US service sector expanded by the most in May in nine months.
“With an onslaught of mixed macro-economic data, recession whispers have gotten louder as Treasury yields edge lower and worries persist that the Fed’s higher for longer messaging could inflict more than just an economic cooling,” LPL Financial chief economist Quincy Krosby said in a note.
Stocks in focus
Auckland casino operator SkyCity has trimmed its guidance for a net profit between $NZ125 million and $NZ125 million in financial 2024, versus prior guidance between $NZ125 million and $NZ135 million.
The group blamed the weak economy in recession-hit New Zealand and a delay in launching a new hotel project.
Funds management group Magellan Financial has posted net fund outflows of $0.1 billion in April on the back of $0.2 billion in retail outflows.
Its institutional business reversed the trend of outflows and posted net inflows of $0.1 billion.
As at May 31 it had total funds under management of $36.7 billion, versus $36.3 billion as at April 30.
Morgan Stanley Infra wins in MinRes’ $1b pit-to-port haul road auction The sale price is around $1 billion for the 49 per cent stake, sources said.