US stocks have climbed on more signs of slowing inflation in North America, but pared gains after a Russian missile attack on Ukraine killed two people in Poland.
Key points:
- The S&P 500 index rose 0.9 per cent, to 3,991, the Nasdaq jumped 1.7 per cent, to 11,390, the Dow Jones index rose 0.2 per cent, to 33,592 at 7:20am AEDT
- The FTSE 100 fell 0.2 per cent, to 7,369, the DAX in Germany rose 0.5 per cent, to 14,379, and the CAC 40 in Paris rose 0.5 per cent, as well to 6,642
- The Australian dollar rose 1.1 per cent, to 67.71 US cents, while the ASX SPI 200 index rose 0.1 per cent, at 7,162.
The Euro extended its losses against the US dollar after the Russian missile attack.
Earlier the US market was boosted after economic data showed that inflation in North America was continuing to ease, raising hopes that the US central bank would cool the pace of interest rate rises.
The producer price index for final demand increased 0.2 per cent in October, and by 8 per cent over the year, which was less than expected.
Producer prices are a measure of business inflation and reflect the prices paid to producers.
Consumer inflation has also pulled back in the US and is running at an annual rate of 7.7 per cent because of the Federal Reserve’s steep rate hikes.
That news drove a big rally last week.
An earnings report from retail giant Walmart also boosted sentiment overnight.
The retailer raised its annual sales and profit forecasts thanks to demand for groceries despite higher prices.
It announced a $US20 billion ($29.5 billion) share buyback plan which saw its shares rise 7.5 per cent.
The major indices came off their highs during the session.
The S&P 500 index gained 0.9 per cent, to 3,991, while the Nasdaq jumped 1.7 per cent, to 11,390 at 7:15am AEDT.
The Dow Jones index was up 0.2 per cent, to 33,592 in a choppy session.
Wall Street is higher for the third day in the last four trading sessions.
The Australian dollar rose 1.1 per cent overnight, and at 7:15am AEDT was buying about 67.71 US cents.
The Australian market is set to open slightly higher with the ASX SPI 200 index up 0.1 per cent, at 7,162.
European markets
The softer-than-expected inflation numbers in the US also boosted confidence in Europe.
Other figures showed that the Eurozone economy expanded by 0.2 per cent from the previous quarter from July to September.
Gross domestic product came in at 2.1 per cent over the year.
However, the European Commission expected the economy to shrink this quarter and into next year because of the energy crisis and rising interest rates.
The FTSE 100 fell 0.2 per cent, to 7,369, the DAX in Germany rose 0.5 per cent, to 14,379, and the CAC 40 in Paris put on 0.5 per cent, as well to 6,642.
Brent crude rose more than 1 per cent, to above $US94 a barrel on news that oil supply to Hungary via the Druzhba oil pipeline was temporarily suspended because of a fall in pressure.
Spot gold gained 0.4 per cent, to $US1,779 an ounce.
ABC/Reuters
