The ASX is set to open on the up this morning, with ASX Futures pointing to a 52-point or 0.8% bump in early trading.
The ASX had a rough October, falling by 3.8% in the worst month of 2023 – so far. Hopefully November will take a different trajectory.
US stock markets advanced on Wednesday after the US Federal Reserve elected to maintain its federal funds rate, quelling fears over a surge in US Treasury yields.
The decision left the rate stable at between 5.25% and 5.5%, its peak level since 2001.
Technology stocks benefited from the stability; semiconductor company Advanced Micro Devices (NASDAQ:AMD) surged 9.7% on comments its new AI chip will generate US$2 billion in sales next year, Nvidia gained 3.8% and Microsoft (NASDAQ:MSFT) 2.4%.
On the downside, shares in beauty product manufacturer Estee Lauder (NYSE:EL) plummeted by 18.9% after slashing its annual profit forecast. Paycom (NYSE:PAYC) Software, a payroll processing firm, saw its shares dip by 38.5% due to projected declines in fourth-quarter revenue.
The Dow Jones Industrial Average rose by 222 points or 0.7%, while the S&P 500 index increased by 1.1%. The Nasdaq index added 210 points, for a 1.6% rise.
Across the Atlantic, European markets also showed strength, particularly in retail and healthcare sectors.
The UK-based clothing and homeware group Next elevated its profit outlook for the fourth time in six months, propelling retail stocks up by 1.7%. Healthcare stocks also rose by 1.1%, with Danish pharmaceutical giant Novo Nordisk (CSE:NOVOb) (NYSE:NVO) increasing by 1.6% ahead of its November 2 results.
The FTSE300 rose by 0.7%, and the FTSE100 gained 0.3%.
Currencies and commodities
It was a mixed response on the foreign exchange front after the Fed held US rates.
The Euro dipped from US$1.0577 to US$1.0520, whereas the Australian dollar increased from US63.27 cents to nearly US63.90 cents at the US close. The Japanese yen strengthened to around JPY150.90 against the US dollar.
Global oil prices declined to a three-week low, influenced by the Federal Reserve's commentary on a strong US economy and potential future rate hikes.
Brent crude lost US39 cents, settling at US$84.63 a barrel, while US Nymex crude fell by US58 cents to US$80.44 a barrel.
The US Energy Information Administration reported a less-than-expected increase of 0.7 million barrels in US crude stockpiles last week.
Base metals showed mixed results; copper futures edged up by 0.1% while aluminium futures slid 0.7%, impacted by weak manufacturing data from China.
The gold futures price decreased by US$6.80 to US$1,987.50 an ounce, and iron ore futures rose by US$3.42 to US$122.33 a tonne.
Looking ahead, key economic indicators and corporate earnings will be in focus.
In Australia, lending and international trade data are slated for release. CSR and AUB Group will issue earnings and host an Annual General Meeting, respectively.
In the United Kingdom, the Bank of England will announce its interest rate decision.
Meanwhile, in the US, initial jobless claims and factory orders are among the data expected, along with earnings from Apple (NASDAQ:AAPL), Eli Lilly (NYSE:LLY), and Moderna.
On the small cap front
The S&P ASX Small Ordinaries closed up 22.4 points or 0.87% yesterday.
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