ASX futures rose around 0.5% this morning, following a strong performance on Wall Street on Tuesday where share markets surged as anticipation built around the Federal Reserve's two-day policy meeting to determine interest rates directions in the near term.
The Dow Jones Industrial Average had its best day since February, closing 0.8% higher.
The S&P 500 and Nasdaq also saw respective increases of 0.6% and 0.4%.
Nvidia led gains with a 1.1% increase after announcing its Blackwell B200 artificial intelligence chip, claiming a performance 30 times faster than existing models.
Conversely, Advanced Micro Devices (NASDAQ:AMD) and Intel (NASDAQ:INTC) faced declines, alongside a 0.9% dip in the Philadelphia Semiconductor index.
Investors breathe out following RBA decision
Back home, sentiment is rising on hints from the Reserve Bank of Australia (RBA) that it may consider interest rate cuts earlier than anticipated, following a sharper-than-expected decline in inflation.
Governor Michele Bullock, acknowledging the cash rate's stability at 4.35%, said there was progress in controlling inflation but still cautioned that the future of cash rate movements was uncertain.
The central bank’s recent dovish turn has built confidence that further cash rate increases may not be on the cards.
At a press conference following yesterday’s rate announcement, Bullock said that “if a number of things conspire, and we end up actually moving more quickly than the forecasts, then we might need to think about interest rate cuts.
“But at the moment, we’re in the position where I don’t want to say either way. It’s basically not ruling it in, not ruling it out.”
Internationally, European markets recovered from a three-day loss, with the energy sector advancing 1.4% amid rising oil prices.
Financial stocks on the continent also saw an uplift, with the banking index growing 1.1%. The German ZEW economic sentiment index marked an increase to 31.7 in March, providing further market optimism.
Currencies and commodities
Global currencies had mixed success against the greenback overnight.
The Euro slipped from US$1.0871 to US$1.0833 and was near US$1.0865 at the US close. The Aussie dollar was stronger, going from 65.03 US cents to 65.34 US cents and closing out at 65.30 US cents.
The Japanese yen dropped from 149.95 yen per US dollar to JPY150.97 and was near JPY150.90 at the US close after the Bank of Japan's decision to end its negative interest rate policy.
In the commodities sector, global oil prices reached new multi-month highs due to geopolitical tensions affecting supply. Brent crude rose by 49 US cents or 0.6% to US$87.38 a barrel, while US Nymex was up 75 US cents or 0.9% to US$83.47 a barrel.
Base metals, however, saw a decline, with copper and aluminium futures falling.
Gold prices dropped slightly as the stronger US dollar influenced the market ahead of the Federal Reserve's decision.
Investors are closely monitoring the upcoming Federal Reserve press conference, seeking clues on the future direction of interest rates.
The US 10-year Treasury yield decreased slightly, indicating a cautious market sentiment as major economic indicators and corporate developments continue to shape investment strategies globally.
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