Australian Market

Australia’s S&P/ASX 200 benchmark index closed 0.9% higher following the release of a mixed set of economic data. Almost all sectors finished the day in the green, with only utilities stocks edging lower. The materials sector was the best performer, rising 1.7%.

US Market 

U.S. stocks rose as investors grew more confident that Thursday’s inflation data would lead to more-muted increases in interest-rates. The S&P 500 ended the day up 1.3%. The Dow Jones Industrial Average added 0.8%, while the technology-focused Nasdaq Composite Index advanced 1.8%. Investors’ attention for the remainder of this week will likely focus on the December inflation report, which the Labor Department will release Thursday. “It’s becoming clearer that inflation has peaked and we’re closer to the end of the rate-hike cycle than people were concerned we’d be,” said Jamie Cox, managing partner at Harris Financial Group. “That’s why markets are breathing a sigh of relief.”

Commodities

Gold prices settled at a fresh eight-month high, a day ahead of the latest reading on U.S. inflation, as traders bet that China’s decision to drop Covid-19 restrictions on its economy will continue to boost prices of precious and industrial metals. February gold rose 0.1% to settle at $1,878.90 an ounce, the highest finish for a most-active contract since May 6, FactSet data show. Gold futures may be headed toward a so-called “golden cross.” That happens when a short-term moving price average crosses above a long-term moving average, potentially indicating a change in sentiment toward the metal.

Oil Futures

Oil futures settled higher, buoyed by expectations of stronger energy demand from China, even as a U.S. government report revealed one of the largest weekly crude inventory gains on record. West Texas Intermediate crude for February delivery rose nearly 3.1% to settle at $77.41 a barrel on the New York Mercantile Exchange. That marked the highest front-month finish since Dec. 30, according to Dow Jones Market Data. March Brent crude added 3.2% at $82.67 a barrel on ICE Futures Europe — also the highest since Dec. 30.

Forex

Major currencies were mostly weaker against the US dollar in European and US trade. The Euro rose from lows near US$1.0724 to highs near US$1.0774 and was near US$1.0755 at the US close. But the Aussie dollar eased from highs near US69.24 cents to lows near US68.72 cents and was near US69.10 cents at the US close. And the Japanese yen dipped from near 132.14 yen per US dollar to around JPY132.84 and was near JPY132.45 at the US close.

European Markets

European sharemarkets closed higher on Wednesday as investors positioned for another potential slowdown in US consumer prices. Real estate stocks saw the largest uptick, up 3.1%, with property developer Aroundtown’s shares jumping 8.6%. The continent-wide FTSEurofirst 300 index gained 0.4%. And the commodity-heavy UK FTSE 100 index was also up 0.4%, hitting its highest level since August 2018. Shares of JD Sports rose 7% after it upgraded its full-year profit guidance as investors cheered an “impressive” festive season sales performance.

Asian Markets

Earlier, in Asia, the Nikkei Stock Average ended 1% higher, led by gains in electronics stocks, as hopes continue for a less aggressive tightening from the Federal Reserve. Chinese shares finished lower and underperformed regional markets as optimism about the country’s relaxed Covid policies faded amid a surge in infections. Most sectors retreated during the session, with software and consumer companies among the biggest decliners. Finance and property stocks led the gainers. The Shanghai Composite Index declined 0.2%, the Shenzhen Composite Index dropped 0.8%, and the ChiNext Price Index lost 1.1%.