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ASX 200 to lift as US CPI data boosts sentiment

Published 15/08/2024, 08:32 am
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Investing.com - Australian shares are expected to rise on Thursday amid a slew of profit reports and favorable US inflation data, which bolstered hopes that the Federal Reserve will stay on track to cut rates next month.

ASX 200 Futures were up 0.1%, following gains on Wall Street where the S&P 500 increased by 0.4%. The Dow Jones Industrial Average gained 0.6%, while the NASDAQ Composite was relatively unchanged.

The US consumer price index (CPI) increased by 0.2% last month, following a 0.1% decline in June. A 0.4% increase in shelter costs, including rents, accounted for nearly 90% of the rise in the CPI. However, the probability of a half-percentage point rate cut has diminished, limiting gains in equities.

In commodities, oil prices fell after a government report showed an unexpected increase in US crude stockpiles. Iron ore dropped 2.4% to $US96.20 a tonne.

Looking ahead, local attention will be on the July employment change data, set to be released at 11.30am.

Among local companies, industrial property giant Goodman Group (ASX:GMG) reported a net loss of $5.2 million for fiscal year 2024, compared to a profit last year. The company maintained its interim dividend at 15¢ per share.

Telstra Group Ltd (ASX:TLS) annual net profit fell by 13% to $1.79 billion, impacted by higher operating costs despite a slight revenue increase. The company will pay a final dividend of 9¢ per share, bringing the total annual dividend to 18¢ per share.

Hearing aid manufacturer Cochlear Ltd (ASX:COH) has forecast growth between 6% and 11% for financial year 2025, with an underlying profit expected to be between $410 million and $430 million.

Treasury Wine Estates Ltd (ASX:TWE) increased its final dividend payout by 11.7% to 19¢ per share, despite a 61% drop in annual net profit to $98.9 million due to significant write-downs in its commercial wine division, totaling $318 million.

On the local bond markets, 10-year and 2-year rates were at 3.922% and 3.574%, respectively.

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