Australian Market

Australia’s S&P/ASX 200 benchmark index fell 0.5%, with strength in the utilities sector offset by widespread losses across other sectors.

US Market 

U.S. stocks jumped to their biggest gains in more than two years, after softer-than-expected inflation data reignited bets that the Federal Reserve would slow the pace of its interest-rate increases. The S&P 500 added 5.5%, while the technology-focused Nasdaq Composite Index soared more than 7.3%. The Dow Jones Industrial Average rose 3.7%.

Overall U.S. inflation was 7.7%, down from 8.2% in September. The core consumer-price index rose 6.3% in October from a year earlier, less than the 6.5% increase economists had expected.

Thursday’s rally was a stark reminder of how much weight investors have been putting on the path of inflation this year. “We believe that the stock and bond markets have found a bottom and we can rally off the lows,” said Jay Hatfield, portfolio manager at Infrastructure Capital Advisors.

Commodities

Gold futures settled at their highest level since late August, supported by a pullback in the U.S. dollar and Treasury yields. December gold rose 2.3% to settle at $1,753.70 per ounce on Comex. The settlement was the highest for a most-active contract since Aug. 25, according to Dow Jones Market Data. “The U.S. inflation data has also brought a lot of good news for the gold price, which is now solidly above the 1,700 price level,” said Naeem Aslam, chief market analyst at AvaTrade.

Oil Futures

Oil futures ended higher as U.S. data revealed signs of easing inflation, prompting a pullback in the dollar and raising the potential for the Federal Reserve to scale back the size of its interest-rate increases. West Texas Intermediate crude for December delivery rose nearly 0.8% to settle at $86.47 a barrel on the New York Mercantile Exchange. January Brent crude, the global benchmark, climbed 1.1% to settle at $93.67 a barrel on ICE Futures Europe. “Oil prices shook off China negativity after the (consumer price index) cooled,” said Phil Flynn, senior market analyst at The Price Futures Group.

Forex

Major currencies were stronger against the US dollar in European and US trade. The Euro rose from lows near US$0.9936 to highs near US$1.0220 and was near US$1.0210 at the US close. The
Aussie dollar lifted from lows near US63.86 cents to highs near US66.30 cents and was near US66.25 cents at the US close. And the Japanese yen firmed from near 146.58 yen per US dollar to JPY140.18 and was near JPY140.50 at the US close.

European Markets

European sharemarkets jumped to their highest level since late August on Thursday after the release of slower than expected US inflation data. The continent-wide FTSEurofirst 300 index rose by
2.6%, notching its biggest percentage gain in five weeks. The UK FTSE 100 lifted 1.1%, as the British pound rallied against the US dollar, benefiting domestic-focused companies.

Asian Markets

Earlier, in Asia, Japan’s Nikkei Stock Average fell 1.0%, tracking Wall Street losses overnight. Mainland China stocks sank, with sentiment hurt by worries that Beijing may further tighten Covid-19 curbs. The Shanghai Composite Index dropped 0.4%, the Shenzhen Composite Index declined 1.0%, and the ChiNext Index was 1.8% lower. Elsewhere, New Zealand’s benchmark NZX-50 closed down 0.5%, weighed on by losses from some utility providers.