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ASX 200 set to open higher, S&P 500 eases from record highs

Published 21/06/2024, 08:22 am
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Investing.com - Australian shares are set to open slightly higher on Friday, despite Wall Street stepping back from record highs.

Large tech companies, which have been driving the market's robust performance this year, saw some of their gains trimmed.

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Local investors will be closely watching Guzman y Gomez, which jumped 36% to $30 on its first day of trading on Thursday.

In New York, the S&P 500 fell by 0.3% to 5473.17 at the close, after reaching a peak of 5505.53 - its first time surpassing 5500. The Dow Jones led the gains in New York, rising by 0.8%, fueled by a 4.3% surge in Salesforce.

The Bank of England kept rates stable but hinted at potential rate cuts in the coming months. Norway's central bank also held steady. On the other hand, the Swiss National Bank unexpectedly reduced its key rate by 25 basis points, marking its second cut this year.

The impressive initial public offering (IPO) of Guzman y Gomez, which saw the Mexican-themed restaurant chain's value exceed $3 billion on its debut, has ignited hopes for a revival in the local share market listings.

While the initial day profits are promising, the focus remains on long-term success. The enthusiasm surrounding Guzman's listing suggests it might be the right time to consider other potential float candidates.

On the bond markets, 10-year rates were at 4.284% while 2-year rates were at 4.087%.

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