Wall St rebounds on tech rally, S&P 500 ends its worst month in seven years


November 01, 2018 08:06:53

Australian shares are set to open moderately higher after Wall Street rebounded for a second consecutive day.

The Australian dollar has slipped to 70.7 US cents and 62.5 euro cents.

But it fell sharply to 55.4 British pence — after the UK’s Brexit secretary, Dominic Raab, said he expects an exit deal to be finalised with the European Union by November 21.

National Australian Bank will release its full-year results today.

While NAB will post a hefty multi-billion dollar profit, the figure is expected to be lower than last year’s due to the customer compensation and royal commission costs that it recently flagged to investors.

Markets at 7:30am (AEDT):

  • ASX SPI 200 +0.5pc at 5,824, ASX 200 (Wednesday’s close) +0.4pc at 5,830
  • AUD: 70.72 US cents, 55.38 British pence, 62.52 Euro cents, 79.9 Japanese yen, $NZ1.09
  • US: Dow Jones +1pc at 25,116, S&P 500 +1.1pc at 2,712, Nasdaq +2pc at 7,306
  • Europe: FTSE +1.3pc at 7,128, DAX +1.4pc at 11,448, CAC +2.3pc at 5,093, Euro Stoxx 50 +1.8pc at 3,202
  • Commodities: Brent crude -0.6pc at $US75.46/barrel, spot gold -0.7pc $US1,214/ounce, iron ore -1.3pc at $US75.71/tonne.

On Wall Street, investors snapped up beaten-down technology stocks, while strong quarterly results from big-name companies helped to lift sentiment.

Most S&P sectors finished higher, though the best performer, by far, was technology (+3.1pc).

Facebook shares advanced 3.8 per cent, after the company said its margins would stop shrinking after 2019 as costs from this year’s Cambridge Analytica scandal ease up.

The Dow Jones index closed 242 points higher (+1pc) at 25,117. This was well off its session highs, with the industrial-skewed index jumping as much as 450 points in afternoon trade.

The benchmark S&P 500 added 1.1 per cent to 2,712, and the tech-heavy Nasdaq rose by a sharp 2 per cent.

During the aggressive October sell-off, the Dow lost 5.5 per cent (its worst monthly decline since January 2016).

The S&P (-7pc) experienced its biggest monthly drop since September 2011.

Meanwhile, the Nasdaq (-9pc) posted its worst month since November 2008 — though its monthly losses have narrowed, pulling it out of correction territory.








First posted

November 01, 2018 07:59:39

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