ASX futures
ASX futures were pointing 0.11% or 8 points up as of 8:00am on Friday, suggesting a gain at the open.
US stocks
US stocks rebounded from early losses Thursday afternoon, snapping a dayslong selloff driven by concerns about the trajectory of interest rates.
The S&P 500 climbed 0.5%, breaking its longest losing streak this year. The Dow Jones Industrial Average rose 0.3% after initial declines.
The Nasdaq Composite gained 0.7% as Nvidia, one of the index's biggest constituents, surged 14%. The semiconductor company said late Wednesday that it is expecting an AI-driven boom and a recovery in its video game business.
The gains follow a wave of selling pressure that sent the S&P 500 down 3.8% over the previous four trading days. Concerns that the Federal Reserve could lift interest rates higher than previously expected, and maintain them there for longer, have been a key driver of those losses, stoking volatility across asset classes.
Commodity markets
In commodity markets, Brent crude oil gained 2.15% to $US82.33 a barrel while gold edged 0.14% lower to US$1,822.92.
Australian government bonds
Australian government bond yields edged higher, with the 2 Year climbing to 3.58% and the 10 Year edging up to 3.88%. Yields on US Treasury notes also increased, with the 2 Year reaching 4.69% and the 10 Year climbing to 3.87%.
Australian dollar
The Australian dollar edged up to 68.11 US cents from its previous close of 68.03. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, remained at 97.43.
Asia
Chinese shares closed mixed Thursday as investors weighed concerns over aggressive interest rate policy against hopes that China’s reopening-driven recovery will support the global economy. The benchmark Shanghai Composite Index slipped 0.1% to 3287.48 and the Shenzhen Composite Index fell 0.2% to 2154.73, while the ChiNext Price Index rose 0.2% to 2457.48. BYD Co. closed flat and SAIC Motor gained 0.1%. Among Chinese liquor stocks, Kweichow Moutai fell 1.0% and Wuliangye Yibin declined 1.2%.
Hong Kong's Hang Seng Index fell 0.35% to close at 20351.35. Investors worried about a hawkish Fed following the overnight release of FOMC meeting minutes. The worst performer on the HSI was Techtronic Industries, which slid 19%. Among other decliners, China Unicom (Hong Kong) lost 5.4%, Xinyi Glass dropped 4.25% and BOC Hong Kong shed 2.55%. Meanwhile, Lenovo Group climbed 5.5%, NetEase rose 4.1% and Sunny Optical Technology was up 3.6%.
The Tokyo Stock Exchange was closed Thursday in observance of the Emperor’s Birthday.
India's benchmark Sensex index fell 0.2% to close at 59605.80, as investors digested FOMC meeting minutes. Losses on the Sensex were led by a mixed bag of companies, with Asian Paints (India) slipping 3.2%, Larsen & Toubro falling 1.4% and IndusInd Bank down 1.3%.
Europe
European stocks closed broadly higher Thursday as investors assessed corporate earnings. The pan-European Stoxx Europe 600 gained 0.1%, the German DAX climbed 0.5% and the French CAC 40 added 0.3%.
Rolls-Royce Holdings jumped 23.7%, topping the Stoxx, after the engineer's full-year results beat forecasts. Genus advanced 8.7% after the animal genetics company reported an 18% rise in first-half operating profit. Mondi fell 4.8% after the packaging and paper group warned of softer demand and pricing in its annual results.
The FTSE 100 of Great Britain ended Thursday down 0.3%. Investors’ positive reaction to news from Rolls-Royce Holdings and WPP failed to offset weakness from various mining, pharmaceutical and consumer goods stocks, AJ Bell investment director Russ Mould said in a market comment. The index was particularly hampered by the likes of several big companies trading ex-dividend, including GSK, AstraZeneca, Unilever and Standard Chartered, as noted by CMC Markets analyst Michael Hewson.
North America
US stocks rebounded from early losses Thursday afternoon, snapping a dayslong selloff driven by concerns about the trajectory of interest rates.
The S&P 500 climbed 0.5%, breaking its longest losing streak this year. The Dow Jones Industrial Average rose 0.3% after initial declines.
The Nasdaq Composite gained 0.7% as Nvidia, one of the index's biggest constituents, surged 14%. The semiconductor company said late Wednesday that it is expecting an AI-driven boom and a recovery in its video game business.
The gains follow a wave of selling pressure that sent the S&P 500 down 3.8% over the previous four trading days. Concerns that the Federal Reserve could lift interest rates higher than previously expected, and maintain them there for longer, have been a key driver of those losses, stoking volatility across asset classes.
The release on Wednesday of minutes from the Fed's most recent meeting did little to offer investors clarity. While the minutes showed that central bankers unanimously backed lifting rates by a quarter-percentage point at their last meeting, they also showed that a few officials favored or would have also agreed to a larger half-point increase.
The meeting minutes sent stocks, and particularly shares of tech companies, oscillating between gains and losses Wednesday and Thursday as traders tried to determine where interest rates will go next.
The uncertainty has weighed on an earnings season that has left many investors "pleasantly surprised," said Doron Barness, global head of trading and cash equities distribution at Oppenheimer & Co.
"I think people are still going to stand down," Mr. Barness said. "They're not investing until they get more clarity because they don't want to buy stocks and be wrong from the get-go if the economy is going to have a hard landing."
In corporate news, Wayfair shares were on track for their worst one-day performance on record. The online furniture retailer fell 29% after the company said it lost 5 million customers in 2022 and posted an annual net loss of $1.3 billion.
Domino's Pizza cut its sales-growth outlook and posted fourth-quarter revenue that missed expectations. Shares of the pizza-delivery company dropped 13%.
Moderna's stock slid 7.5% after the drugmaker reported lower quarterly revenue and earnings, as demand for its Covid-19 vaccine fell.
