Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolios

Australian shares up 0.2% amid global tech stock optimism

Published 25/01/2024, 09:47 am
© Reuters.
AUD/USD
-
MSFT
-
SAPG
-
NVDA
-
ASML
-
AUS200
-
NFLX
-
TSLA
-
BTC/USD
-

Investing.com - A global wave of enthusiasm for technology stocks, spurred by encouraging news from Netflix (NASDAQ:NFLX), ASML, and SAP, is setting Australian shares on a course for growth. Market heavyweights Microsoft (NASDAQ:MSFT) and Nvidia have both set new record highs, with Tesla (NASDAQ:TSLA) and Resmed due to report after the closing bell.

Use discount code “INVPRODEAL” and receive an additional 10% off the InvestingPro+ bi-yearly subscription. Click here! and don't forget the discount code.

Iron ore experienced a resurgence following the announcement by the governor of China's central bank about a potential reduction in the reserve requirement ratio for banks within two weeks. This is the latest indication that China is working to strengthen its struggling equities markets and overall economic outlook.

Netflix shares soared by 10.7% following a surprising increase in subscribers, solidifying its position as the leading global streaming service. In Europe, ASML and SAP experienced significant growth due to unexpected order strength, further enhancing the outlook for semiconductor manufacturers. US-based chipmakers, including AMD (NASDAQ:AMD), Nvidia, Broadcom (NASDAQ:AVGO), Qualcomm (NASDAQ:QCOM), and Intel (NASDAQ:INTC), also saw gains.

Nvidia is approaching Amazon (NASDAQ:AMZN)'s market cap, with its share price having risen 217% over the past year. Microsoft's stock market value also briefly surpassed the $US3 trillion mark for the first time, making it the world's second most valuable company, just behind Apple (NASDAQ:AAPL). Microsoft and Apple have been competing for the top spot as the most capitalized stock on Wall Street since the beginning of the year.

Google's parent company, Alphabet (NASDAQ:GOOGL), also rallied, momentarily putting it on track to close at an all-time high for the first time in over two years. CNN's Fear and Greed Index has entered 'extreme greed' territory, with a reading of 76 out of 100 at 4 pm in New York.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

ASX 200 Futures were up 18 points or 0.2% to 7506 as of 8 am AEDT. The Australian dollar fell slightly, while Bitcoin saw a 1.2% increase.

The latest data on purchasing for manufacturing and services contributed to the overall positive sentiment in markets overnight. The Bank of Canada maintained its key rate at 5% as expected, with several institutions forecasting the first cut for June.

Late on Wednesday, the People’s Bank of China announced plans to cut the reserve requirement ratio for banks within two weeks, providing 1 trillion yuan in long-term liquidity to the market.

In a note, Morgan Stanley (NYSE:MS) Research mentioned that the lowered consensus 4Q EPS estimate over the past three months creates a higher probability of a solid, mid-single-digit EPS surprise for 4Q earnings. The firm expects 4Q results to spur share-price upside for several companies, including Amazon, BellRing, CBOE, IDEXX Laboratories, NOV, SBA Communications (NASDAQ:SBAC), Tenable, and Western Digital (NASDAQ:WDC).

ASML Holding (AS:ASML), Europe's most valuable technology company, saw its shares rise 9.7% to close at a record high in Amsterdam after its orders more than tripled last quarter, indicating a resurgence in parts of the semiconductor industry. Germany's SAP also touched a record high after announcing a restructuring plan for 2024 and reporting robust growth in its cloud order backlog for the fourth quarter.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.