ASX up, Apple paces New York tech rally

On Wall Street, all three major benchmarks rose. The VIX also rose, up 4.7% to 23.87. Energy and information technology punctuated the 11 S&Industrial groups of P 500 are higher.

Apple advanced 3.9%, supported by reports of strong demand for its latest iPhone model.

Wedbush Securities Dan Ives: “We are already seeing delivery times push to mid-October for many Pro models and most pre-orders are now looking at 3-4 week deliveries and moving quickly. So far, demand and orders for iPhone 14 are slightly ahead of iPhone 13 and exceed our expectations from the start.

Today’s agenda

Local: Westpac-MI, September consumer confidence at 10:30 a.m. AEST, NAB business survey at 11:30 a.m. AEST

Overseas data: August final German CPI; Eurozone ZEW expectations in September; United Kingdom July Unemployment rate as defined by the ILO July; August CPI in the United States at 22:30 AEST

Market Highlights

ASX futures up 45 points or 0.65% at 7002 around 6:45 a.m. AEST

  • AUD +0.7% to 68.87 US cents
  • Bitcoin + 4% to US$22,423 around 6:45 a.m. AEST
  • On Wall St: Dow +0.7% S&P-500 +1.1% Nasdaq +1.3%
  • In New York: BHP +2.3% Rio +1.6% Atlassian +2.3%
  • Tesla +1.6% Apple +3.9% Amazon +2.4%
  • In Europe: Stoxx 50 +2.1% FTSE +1.7% CAC +2% DAX +2.4%
  • Spot gold +0.6% at US$1,727.01 per ounce at 2:10 p.m. PT
  • Brent +1.1% to $93.88 a barrel
  • Iron ore +1.7% to US$101.95 per tonne
  • 10-year yield: United States 3.35% Australia 3.63% Germany 1.65%
  • US prices from 4:43 p.m. in New York

United States

U.S. consumer inflation expectations fell further in August as gasoline prices extended their sharp decline from June’s record high, a development that should be welcomed by Federal Reserve policymakers assessing the magnitude of an interest rate hike next week.

Consumers in August saw inflation at 5.75% over the next 12 months, down from 6.2% in July and the lowest rate since October 2021, the monthly Consumer Expectations Survey showed. the New York Fed. They also predicted price increases of 2.8% on average over the next three years – the lowest pace since the end of 2020 – after setting inflation on that horizon at 3.2% in July.

Additionally, consumers last month saw price increases of 2% over the next five years, matching the level of inflation targeted by the Fed. That was down from 2.35% in July and 3% at the start of the year, when the New York Fed began asking about inflation expectations during this period.

Europe

European stocks hit a two-week high on Monday on hopes of some easing in energy prices and banks rallied to nearly four-week highs on bets on interest rate hikes most important in Europe.

The pan-European STOXX 600 index rose 1.8%, following its first weekly gain in a month on Friday.

Investors focused on attempts to push through multi-billion euro packages to prevent utilities from collapsing under a cash crunch and to protect households from soaring energy bills.

“We are still seeing an extension of the positivity that emerged last week when action was taken in Europe to cap energy prices,” said Stuart Cole, chief macroeconomist at Equiti Capital.

“This has raised a lot of hopes that inflation could peak sooner than previously thought and that central banks, although still expecting to maintain their aggressive stance on interest rate hikes short-term interest, may not have to raise them as high as originally feared.”

But keeping energy prices artificially low risks fueling domestically generated underlying inflation, which could shift expectations for forward interest rates, Cole said.

Banks, gaining in a higher interest rate environment, rose with the Euro Banks Index jumping 3.4%, extending Thursday’s gains when the ECB hiked key rates by 75 basis points. base and promised further increases.

Hawkish signals from the ECB sent the banking index up nearly 10% for the month, supporting much of the STOXX 600’s 3% gain so far in September.

Goods

U.S. emergency crude oil inventories fell 8.4 million barrels last week to 434.1 million barrels, their lowest since October 1984, according to U.S. Department of Energy data ( DOE) published on Monday.

The release of the Strategic Petroleum Reserve (SPR) during the week ended September 9 was the biggest draw since May. It included about 6.3 million barrels of sweet crude and about 2 million barrels of sour crude.

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