Overseas Market Report
Apple has led a rebound in technology shares and boosted all three major US stock indexes, while trade worries eased after China welcomed new talks with the United States. The Dow inched closer to its all-time high that was hit on January 26, closing at its highest since February 1 on Thursday and just 1.8 per cent below the January 26 close. The S&P 500 and the Nasdaq had already moved past their January peaks to record highs in prior weeks. The S&P technology index climbed 1.2 per cent on Thursday, its biggest percentage gain since August 2, boosted by Apple’s 2.4 per cent gain.
The timing of a new round of trade talks remains unclear and US President Donald Trump said the United States was under no pressure to make a deal with China. Portfolio manager at Allianz Global Investors in Dallas, Burns McKinney, said stocks already had a boost on Wednesday when investors got word the Trump administration had reached out to China on trade talks. “The inflation numbers came out lower than people had expected,” McKinney said. “That’s a positive because it gives the (Federal Reserve) cover to maybe move slower in raising interest rates, which is good for equities.”
US consumer prices rose less than expected in August and underlying inflation pressures also appeared to be slowing, a report from the US Labor Department showed.
Morning Market Note - Friday 14th September