Market Update
Meanwhile, March CPI data from Spain came in lower than expected, indicating a much-needed respite from scorching consumer prices worldwide.
ASX futures were 39 points or 0.54% higher as of 7:00am on Friday, suggesting a jump at the open.
US indices closed higher Thursday, extending their gains into a second day. Stocks were bolstered by waning concerns about global banks and growing hopes that the Federal Reserve could soon pause its interest rate increases.
The tech-heavy Nasdaq Composite rose 0.7%. The broad S&P 500 Index added 0.6%, while the Dow Jones Industrial Average gained 0.4%.
Of the S&P 500's 11 sectors, 10 were in the green, with consumer discretionary, information technology and real estate as the top performers. Financial shares lagged behind.
The stock market has been relatively resilient this month, even with the collapse of three midsize and smaller US banks. And in recent days, investor concerns about the banking industry have eased.
In commodity markets, Brent crude oil edged up 1% to $US79.08 a barrel while gold gained 0.9% to US$1,982.71.
Australian government bonds edged higher, with the 2 Year yield increasing to 2.99% and the 10 Year climbing to 3.35%. US Treasury notes were lower, with the 2 Year yield falling to 4.10% and the 10 Year slipping to 3.54%.
The Australian dollar jumped to 67.05 US cents from its previous close of 66.83. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, dipped to 95.94.
Asia
Chinese shares ended higher ahead of the release of official March PMI data due Friday. The data will be watched closely to gauge the sustainability and strength of China’s economic rebound. Energy and consumption companies led the session's gains.
PetroChina rose 7% after reporting sharply higher net profit for 2022. Home appliance manufacturers gained with Midea Group up 6% and Haier Smart Home rising 3.1%. Telecom stocks declined. China Mobile dropped 2.8%, while China Unicom fell 3.1%.
The benchmark Shanghai Composite Index closed 0.7% higher at 3261.25. The Shenzhen Composite Index gained 0.2% and the ChiNext Price Index added 0.5%.
Hong Kong stocks ended the session in the green, continuing Wednesday's soaring gains. Optimism over Alibaba's move to restructure its businesses lifted shares higher. The benchmark Hang Seng Index rose 0.6% to settle at 20309.13.
PetroChina shares surged after the oil major posted record earnings, increasing its 2022 net profit by two-thirds on year. The stock ended 7.8% higher. Alibaba's gains moderated, although its shares still rose 2.5%. The Hang Seng Tech Index finished 0.6% higher at 4270.32.
Japanese stocks ended lower, dragged by falls in financial, tech and energy shares. Uncertainty regarding the stability of the global banking sector weighed on investor sentiment. Japan Post Bank dropped 3.6%, SoftBank Group lost 3.5% and Nomura Holdings declined 1.7%.
The Nikkei Stock Average fell 0.4% to 27782.93.
The Bombay Stock Exchange was closed Thursday in honor of Ram Navami.
Europe
European indices rose as hopes of weaker inflation in Europe and a pause in US interest rate hikes lifted stocks higher. The pan-European Stoxx Europe 600 and the French CAC 40 advanced 1.1% while the German DAX gained 1.3%.
"Fresh from their triumph yesterday, stocks have barreled into a second day of gains, with the catalyst being this morning's much weaker Spanish inflation reading," IG analyst Chris Beauchamp wrote. "A rise in jobless claims and lower US Q4 GDP growth also boosted the hopes of those expecting the Fed to be on pause at its next meeting and beyond."
The British FTSE 100 ended Thursday up 0.7%, its fourth daily increase in a row. It has been another positive day for European markets with the FTSE now pushing up to its highest levels in two weeks, although it remains well short of reversing its March losses, CMC Market analyst Michael Hewson wrote. Ocado Group PLC has continued to make gains, rising sharply for the second day in a row. The commercial real estate sector has also continued to rebound, led by British Land Co. and Land Securities Group PLC, Hewson said.
North America
US indices closed higher Thursday, extending their gains into a second day. Stocks were bolstered by waning concerns about global banks and growing hopes that the Federal Reserve could soon pause its interest rate increases.
The tech-heavy Nasdaq Composite rose 0.7%. The broad S&P 500 Index added 0.6%, while the Dow Jones Industrial Average gained 0.4%.
Of the S&P 500's 11 sectors, 10 were in the green, with consumer discretionary, information technology and real estate as the top performers. Financial shares lagged behind.
Federal Reserve Bank of Boston President Susan Collins said she expected the US central bank to continue tightening monetary policy a bit more, before holding interest rates through the end of the year.
"While the banking system remains strong and resilient, recent developments will likely lead banks to take a somewhat more conservative outlook and tighten lending standards, thus contributing to slowing the economy and reducing inflationary pressures," Ms. Collins said.
Ms. Collins added she's optimistic that there will be a path to curb inflation without a significant economic downturn.
The stock market has been relatively resilient this month, even with the collapse of three midsize and smaller US banks. And in recent days, investor concerns about the banking industry have eased.
"Market fears of broader contagion are limited," said Matt Orton, chief investment strategist at Raymond James Investment Management. "The market is starting to coalesce around the fact that this was not a systemic risk event. It was very idiosyncratic, and specific to issues at certain banks."
On Wednesday, the S&P 500 ended at its highest level since March 6, shortly before the banking crisis began with the rapid, successive collapses of Silvergate Capital, Silicon Valley Bank and Signature Bank. Bond yields have also steadied after falling sharply.
In economic data, the number of workers filing for unemployment benefits is still historically low, the Labor Department said Thursday, despite an increase in claims last week. That shows the broader labor market remains robust despite large companies announcing layoffs.
"The implication is that people are losing jobs, but they're getting new ones," said Gina Bolvin, president of Bolvin Wealth Management Group. "So that goes to why the market is doing so surprisingly well this year, which is that the consumer is resilient and strong."
In individual stocks, shares of big and regional banks ticked down. Western Alliance lost 0.4% and First Republic shed 4.0%. Shares of Charles Schwab were down 5% as Wall Street analysts cut profit estimates.
