Australia

The local sharemarket is expected to open higher after the release of tepid US inflation figures eased expectations that US interest rates will rise faster this year.
At 7am (AEST), the Australian share price futures index was up 13 points, or 0.21 per cent, at 6110 points.
In the US, stocks were up about 0.8 per cent after the US Labor Department said inflation in April rose by 0.2 per cent, broadly in line with expectations, lifted by higher gas costs, a sign that broader inflation pressures remain muted.
The Australian share market on Thursday hit a four-month high as surging oil prices fuelled a second straight day of big gains for the energy sector. The benchmark S&P/ASX200 was up 10.7 points, or 0.18 per cent, at 6118.7 points, while the broader All Ordinaries index was up 11.5 points, or 0.19 per cent, at 6215.6 points.
Out today: ABS housing finance figures for March. Oil Search hold its annual general meeting on Friday, and Graincorp releases its half-year earnings results.

Asia

Asian stocks rose on Thursday, with energy shares leading the way as crude oil prices bolted higher after US President Donald Trump’s decision to pull out of a nuclear deal with Iran.
MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.6 per cent, while Japan’s Nikkei climbed 0.39 per cent. South Korea's KOSPI rose 0.83 per cent and Shanghai was 0.48 per cent higher.
Energy shares soared as crude oil prices reached 3½-year highs, with investors betting the US withdrawal from a nuclear agreement with Iran would increase tensions in the Middle East and curtail oil supply. Markets took the shock win of Mahathir Mohamad in their stride, although Malaysia’s stock exchange could rise 8 per cent in a few days, strategists say.

Europe

The UK’s top share index hit a fresh 3½-month high on Thursday after a decision by the Bank of England to keep rates on hold at 0.5 per cent pushed sterling lower, while shares in Royal Bank of Scotland surged after it settled a probe in the US.
The FTSE index closed 0.5 per cent higher at 7700.97 points, outperforming a slightly negative European market.
Sterling dropped after the Bank of England held interest rates steady as expected, but trimmed some losses after Governor Mark Carney told the BBC that he expected a rate rise over the course of the next year if there are no shocks to the economy.

North America

Wall Street jumped higher, and Apple shares inched closer to a $US1 trillion stock market value, as tepid inflation data eased worries of faster US interest rate hikes this year.
Fuelled by a $US100 billion buyback plan unveiled last week, Apple rose 1.43 per cent to a record high close of $US190.04, lifting the S&P 500 more than any other stock. The iPhone maker is about 7 per cent away from becoming the first company ever to have a market capitalisation of $US1 trillion.
The US Labor Department’s consumer price index increased 0.2 per cent in April, less than economists expectations, as rising costs for gasoline and rental accommodation were tempered by a moderation in healthcare prices.
A higher inflation number could have increased fears of more aggressive interest rate hikes by the US Federal Reserve.
With investors setting aside concerns about a trade war with China, the S&P 500 has risen 3.55 per cent in the past week, its strongest five-session showing since February. The S&P 500 reclaimed its 100-day moving average for the first time since April 19, suggesting to some traders that the market may move higher.
The Dow rallied 195.99 points, or 0.8 per cent to end at 24,739.53 points, while the S&P 500 gained, 25.28 points, or 0.94 per cent to 2,723.07, its highest level since mid-March.
The Nasdaq Composite added, 65.07 points, or 0.89 per cent to 7404.98.

More from Morningstar

• 10 green funds ETFs top $575m FUM

• Mahathir's shock election win rattles markets

• Make better investment decisions with Morningstar Premium | Free 4-week trial

 

Lex Hall is a Morningstar content editor, based in Sydney.

© 2018 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. This information is to be used for personal, non-commercial purposes only. No reproduction is permitted without the prior written consent of Morningstar. Any general advice or 'class service' have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), or its Authorised Representatives, and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a licensed financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO"). The article is current as at date of publication.