In US economic data, the consumer price index (CPI) rose by 0.4% in September (survey: +0.2%). Annual growth eased from 8.3% to 8.2% (survey: +8.1%). The core CPI (excluding food and energy) rose by 0.6% in September (survey: +0.4%). Annual growth of the core CPI was up from 6.3% to 6.6%, the highest level since August 1982 (survey: +6.5%). Initial jobless claims rose by 9,000 to 228,000 last week (survey: 225,000).

European sharemarkets climbed on Thursday, rebounding from a near two-year low earlier in the session. The continent-wide FTSEurofirst 300 index gained 0.8%, snapping a six-day losing streak. The UK FTSE 100 index added 0.4% as reports emerged that the UK government was discussing making changes to the fiscal plan announced last month that sparked a rout in bond markets.

US sharemarkets rebounded on Thursday, brushing aside interest rate hike jitters after a surprise rise in inflation. Shares of Walgreens Boots Alliance pharmacies rose 5.4% following better-than-estimated fourth-quarter results. Delta Air Lines’ (+4.0%) quarterly profit missed Wall Street estimates but the carrier expects travel demand to remain robust. Shares of Chevron gained 4.9% as oil prices spiked, and bank stocks Goldman Sachs and JPMorgan rose 4.0% and 5.6%, respectively. The Dow Jones index rose by 828 points or 2.8%, recovering from a 549 point drop earlier in the session. The S&P 500 index lifted 2.6%. And the Nasdaq index gained 232 points or 2.2%.

US treasuries fell on Thursday (yields higher) after a hotter-thanexpected reading on US consumer prices bolstered the case for a fourth straight 75 basis point rate hike from the US Federal Reserve next month. US 10-year yields rose by around 6 points to near 3.96%. And US 2-year yields lifted by around 19 points to near 4.48% after hitting 4.53%, the highest level since 2007.

Major currencies were firmer against the US dollar in European and US trade. The Euro rose from lows near US$0.9636 to highs near US$0.9803 and was near US$0.9775 at the US close. The Aussie dollar rose from lows near US61.72 cents to highs near US63.15 cents and was near US62.90 cents at the US close. And the Japanese yen firmed from 147.64 yen per US dollar, near the lowest since August 1990, to JPY146.62 and was near JPY147.25 at the US


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Global oil prices traded about 2% higher on Thursday. US distillate stockpiles, which include diesel and heating oil, fell by 4.9 million barrels last week to 106.1 million barrels, the lowest since May, according to the Energy Information Administration. That helped traders look past a surprise 2 million build of US gasoline stocks and
a 9.9 million lift in crude inventories. The Brent crude oil price rose by US$2.12 or 2.3% to US$94.57 a barrel. And the US Nymex crude oil price added US$1.84 or 2.1% to US$89.11 a barrel.

Base metal prices advanced on Thursday. Aluminium extended gains, up 1.7%, on the prospect of a complete US ban on supplies from Russia. Tin lifted 1.4% with copper 0.4% higher.

The gold futures price fell by US50 cents an ounce or less than 0.1% to US$1,677.00 an ounce. Spot gold was trading near US$1,663 an ounce at the US close. Iron ore futures fell by US73 cents or 0.8% to US$95.40 a tonne.

Originally published by CommSec