Joshua Barker appeared on Ausbiz this morning covering the key themes moving markets and what Australian investors are watching today.
The local market is set to break its run of losses, with ASX futures up 1.5% as global equity markets rallied overnight on falling oil prices and strong US earnings.
What happened overnight
Global equity markets put in a strong session as oil prices pulled back. European shares jumped more than 1% for their biggest monthly gain in more than a year, while Wall Street surged to new record highs. The S&P 500 and Nasdaq both recorded their biggest monthly percentage gains since 2020, and the VIX volatility index has now fallen to its lowest level since before the outbreak of conflict in the Middle East.
Earnings in focus
US GDP grew at a 2% annualised rate in the first quarter, driven by business investment in AI and a rebound in government spending. The pickup is considered temporary by many economists, with the Middle East conflict continuing to put upward pressure on inflation and weighing on household purchasing power.
US economy picks up but risks remain
US GDP grew at a 2% annualised rate in the first quarter, driven by business investment in AI and a rebound in government spending. However, economists are treating the pickup as temporary. The Middle East conflict continues to put upward pressure on inflation and is eroding household purchasing power, headwinds that are likely to weigh on growth through the rest of the year.
Central banks hold steady
Both the European Central Bank and the Bank of England left interest rates unchanged at their latest meetings, as was widely expected. The Bank of England held its policy rate at 3.75%.
What to watch locally today
March quarter producer prices will be released alongside S&P Global’s PMI manufacturing figures. Coles and ResMed are releasing updates. ANZ has reported a first half interim profit of $3.78 billion, up 6% on the prior corresponding period.
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