ASX ends higher after tech-led Wall St rebound; Bitcoin drops on Tesla sell-down – ABC News

ASX ends higher after tech-led Wall St rebound; Bitcoin drops on Tesla sell-down
Follow the latest updates from the NSW floods in our live blog
For the latest flood and weather warnings, search on ABC Emergency
Follow the results as votes in the US midterms are counted
The Australian share market has ended the trading day higher, as a rebound in big US tech stocks filtered through locally.
Despite futures trade pointing to an early fall, the benchmark ASX 200 share index ended up, closing 0.5 per cent higher, at 6,794 points.
The broader All Ordinaries index, including many smaller firms, did slightly better, gaining 0.6 per cent, to 7,018.
Local gains were mainly led by tech and biotech stocks.
Some of the best gains included Telix Pharmaceuticals (+20.7 per cent), Zip (+16.5 per cent), Link (+12.6 per cent), Novonix (+11.7 per cent), Block (+6.7 per cent) and BrainChip (+6.6 per cent).
The big iron ore miners were some of the larger losers, amid a billion dollar tax settlement with the ATO for Rio Tinto (-2 per cent), and reports that China's steelmakers are close to forming an iron ore purchasing cartel.
BHP (0.9 per cent) and Fortescue (-1.1 per cent) joined Rio in the red.
The local market's tech focused performance mirrored Wall Street.
While the industrial-focused Dow Jones index gained just 0.2 per cent, to 31,875, and the broader S&P 500 rose 0.6 per cent, to 3,960, the tech-heavy Nasdaq index jumped 1.6 per cent, to 11,898 points.
Netflix was a key driver of the gains, with its shares surging 7.3 per cent, to $US216.44 ($314.26), after it reported better-than-expected earnings and lost fewer subscribers than many had feared.
Its results helped boost sentiment for other tech giants, with Apple, Amazon, Meta and Microsoft all rising.
Tesla also reported better than expected results, but that was after trade had closed on the main markets.
One measure of profit per share was $US2.27, versus analyst forecasts centring on $US1.81.
The electric car maker has dramatically increased prices on many of its models to offset rising costs, amid supply chain shortages, surging lithium and other raw material prices, and its large investments in new factories.
Tesla also revealed the company had sold off around three-quarters of its bitcoin holdings to cash, although Elon Musk told investors that "this should not be taken as some verdict on bitcoin", but was rather a move to increase the company's financial reserves to cope with Chinese COVID lockdowns that may continue to affect its key factories there.
Bitcoin prices fell on the news, with the cryptocurrency trading at $US22,870 just after 5pm AEST.
Refinitiv data shows more than three-quarters of S&P 500 companies that have reported profit results so far have beaten analyst expectations.
"It seems like we have gotten some positive surprises, even if those positive surprises were just really that companies didn't do as badly as what was probably originally feared," Brian Jacobsen from Allspring Global Investments told Reuters.
Across the Atlantic, European shares generally eased slightly as traders waited to see if Russia fully resumed the supply of gas through the Nordstream 1 pipeline, which was affected by maintenance that was due to finish today.
Traders are also now anticipating that the European Central Bank may increase interest rates by more than 25 basis points when it starts its rates-hike cycle at tonight's meeting.
Market pricing implies a 40-basis-point rise to its benchmark deposit facility rate, which is currently -0.5 per cent.
"We look for a 50-basis-point rise to zero in the deposit rate and guidance to repeat a 50-basis-point hike in September with the Bank aiming to front-load rate hikes ahead of weaker conditions later in 2022 and into 2023, when room to move may be more limited," wrote NAB's Rodrigo Catril.
However, there is fresh uncertainty in Europe, not only about how much gas supply Russia might choose to withhold, but also whether the Italian government might collapse.
"A collapse of the coalition government would send Italy into months of political uncertainty with a new election coming sometime during the fall," Mr Catril noted.
Italy's share market underperformed the rest of Europe, dropping 1.6 per cent overnight.  
We acknowledge Aboriginal and Torres Strait Islander peoples as the First Australians and Traditional Custodians of the lands where we live, learn, and work.
This service may include material from Agence France-Presse (AFP), APTN, Reuters, AAP, CNN and the BBC World Service which is copyright and cannot be reproduced.
AEST = Australian Eastern Standard Time which is 10 hours ahead of GMT (Greenwich Mean Time)


Leave a Reply

Your email address will not be published. Required fields are marked *