The ASX200 has hit a new record high right out the gate on Friday trades the very next day after US CPI inflation beat expectations coming in at 3% flat.
That pushed ASX200 futures up to 7,914pts ahead of Friday trades.
Per ASX data, the index climbed to 7,935pts in the first three minutes of Friday trade.
Core inflation which excludes fuel and food prices also hit a record low of 3.3% in the US (a record low in the context of living in post-COVID, anyway.)
European markets all finished in the green overnight and markets are now predicting with 100% confidence a 25bps rate cut in September of 2024. A small number of traders have even put money on a rate cut in July. The next Fed decision comes out on the 31st of this month.
But the ASX200’s climb towards new levels is also helped by domestic catalysts ex-USA.
Commonwealth Bank shares hit a fresh record of $130ea on Thursday as institutional investors and those in the retail cohort able to afford them continue to chip in and acquire CBA.
The continued strong performance of Commonwealth shares reflects something of a breakdown in consensus reality for the financial zeitgeist – while the overwhelming majority of analysts were notably bearish on CBA shares all through 2023, with no major brokers recommending the stock a buy at one point, it has continued to climb.
What could threaten closing at a fresh all time high is that BHP announced overnight its suspending nickel mining broadly for the foreseeable future given an international nickel market now flushed with nickel from Indonesian mines largely bankrolled by Chinese investors.
However, a bullish signal from the Fed is what we’ve all been waiting for.