Investing.com - The ASX 200 opened 0.9% higher at Friday's open, after major benchmark averages in the US extended record highs overnight as traders cheered weaker-than-expected retail sales and industrial production data.
Commodity markets saw oil briefly rally above $US83 a barrel and gold edge above $US2000 an ounce, while iron ore moved back towards $US130 a tonne. These shifts were reflective of the weakening U.S. dollar. Bitcoin maintained its position above $US52,000.
Five of the Magnificent Seven stocks experienced a decline, while Tesla (NASDAQ:TSLA) and Meta Platforms reported gains. Shares in SoundHound AI (NASDAQ:SOUN) soared by 66.7% following Nvidia’s disclosure of a stake in the voice AI and speech recognition company.
Apple (NASDAQ:AAPL) managed to recover most of its losses after Bloomberg reported that the company is close to completing a crucial new software tool for app developers, which would intensify competition with Microsoft (NASDAQ:MSFT).
Data from Japan, the UK, and the US in the past 24 hours highlighted economic weaknesses, bolstering hopes that central banks will pivot to cutting rates sooner. The UK economy contracted by 0.3% in the three months to December, Japan's GDP contracted at an annualized pace of 0.4% in the last quarter of the previous year, and U.S. retail sales fell 0.8% last month, the most significant drop since February 2023.
Friday will see several companies, including ASX Ltd (ASX:ASX), Charter Hall Retail Reit (ASX:CQR), Cleanaway Waste Management Ltd (ASX:CWY), Deterra Royalties Ltd (ASX:DRR), GQG Partners Inc DRC (ASX:GQG), Insurance Australia Group Ltd (ASX:IAG), Inghams Group Ltd (ASX:ING), and Qbe Insurance Group Ltd (ASX:QBE), report their financial results.
Adrian Orr, RBNZ governor, stated in a speech that "a flexible approach to inflation targeting, with a medium-term focus, remains appropriate", signalling no rush to cut rates.