The Australian sharemarket is tipped to rise today as investors await the latest rates call from the Reserve Bank, due this afternoon.
A handful of commentators think there is likely to be at least one more rise before the end of the year but the broad consensus is that rates will stay put and this is fuelling investor confidence.
Rates rally on US markets
There was a rates-related rally overnight on Wall Street, marking a third consecutive session of gains, as optimism grew around the notion that the Fed might actually make a cut soon.
The Dow Jones index gained 177 points or 0.5%, the S&P 500 index was up 1% and the Nasdaq index lifted 193 points, up 1.2%.
In the tech sector, Nvidia and Tesla (NASDAQ:TSLA) were standout performers, recording rises of 3.8% and 2%, respectively. Micron Technology (NASDAQ:MU) also saw significant gains, up 4.7%, following an upgrade by Baird.
Other notable performers included Super Micro Computer, which saw shares increase between 5.8% and 6.1%. Disney experienced a 2.5% rise ahead of its results announcement due Tuesday.
The positive sentiment was further bolstered by an announcement from Hamas that it had accepted an Egyptian-Qatari cease-fire proposal to end the conflict with Israel, which provided additional support to the markets.
Apple (NASDAQ:AAPL), bucking the trend, saw a decline of 0.9% following commentary from Berkshire Hathaway (NYSE:BRKa), while Tyson Foods (NYSE:TSN) reported challenges due to persistent inflation, leading to a 5.7% drop in its shares.
In Europe, markets also ended the day on a positive note. The FTSEurofirst 300 index rose by 0.5% with the insurance sector leading the gains, up 1.7%. European Central Bank policymakers reinforced the outlook for inflation, projecting a return to the 2% target by mid-next year.
Currencies and commodities
Currency markets saw mixed movements against the US dollar. The Euro and Australian dollar both appreciated while the Japanese yen weakened.
Commodity markets were upbeat, with global oil prices and base metals like copper and aluminium posting gains. Gold also increased in value, with futures climbing by 1% to US$2,331.20 an ounce.
Iron ore futures were up US$1.53 or 1.3% to US$119.56 a tonne overnight as confidence rose on China's efforts to revive its struggling property market and an expected wave of restocking from steelmakers after the Labour Day holidays.
What’s happening in small caps?
The S&P/ASX Small Ordinaries finished 3.81% higher yesterday, closing at 3,011.65.
You can read about the following and more throughout the day here on the Proactive website: