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Australian market primed for rally; Macquarie Group posts $1.4B profit

EditorOliver Gray
Published 03/11/2023, 08:41 am
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Investing.com - The ASX 200 is expected to open in positive territory on Friday, following a strong overnight performance among US benchmark indices.

By 8:40 am AEDT (9:40 pm GMT), ASX 200 Futures showed a promising 2.1% lift, indicating a potential rally in the market.

On Wall Street, the stock market experienced a significant upturn after the Federal Reserve hinted it might have reached the end of its interest rate hikes. The market is now eagerly waiting for Friday's jobs report.

The S&P 500 witnessed its best session since April, increasing by nearly 2%. This surge was driven by both oversold conditions and market positioning. The market’s “fear gauge”, known as the VIX, fell below 16, breaking a critical technical threshold. Among the major cap stocks, Tesla (NASDAQ:TSLA) led the way, while Apple (NASDAQ:AAPL) also made notable gains ahead of its results announcement.

The S&P 500 increased by 1.9% to 4317.78, while the Dow Jones Industrial Average rose by 1.7% to 33,839.08. The Nasdaq also recorded an impressive 1.8% rise to 13,294.19.

While US weekly jobless claims saw a moderate increase, economic observers are keenly awaiting the October jobs report due on Friday.

The Bank of England made the decision to maintain rates at 5.25% for the second time following nearly two years of hikes. European shares, on the other hand, advanced for the fourth consecutive day, marking their longest winning streak since July.

In corporate news, both Block Inc (ASX:SQ2) and Macquarie Group Ltd (ASX:MQG) published their earnings today. Macquarie Group posted a profit of $1.4 billion. Meanwhile, Coles Group Ltd (ASX:COL), Downer Edi Ltd (ASX:DOW), Qantas Airways Ltd (ASX:QAN), and Zip (ASX:ZIP) are all set to hold their annual general meetings.

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