The ASX is up 0.3% on Thursday after the US market closed modestly higher.
Key US inflation data was released overnight, with the consumer price index (CPI) showing a 0.5% month-on-month increase in December. Compared to a year ago, prices have risen to near 40-year highs of 7%.
Following the release, US stocks retreated off session highs, but still managed to close in positive territory.
The S&P/ASX Energy and Materials indexes are up 1.3% and 1.5% respectively as positive sentiment sweeps across the commodity sector.
Oil prices are up for a third straight session, with crude oil sitting at 3-month highs of US$82.8/b.
The US Energy Information Administration (EIA) flagged overnight that oil inventories have slumped to their lowest levels since October 2018.
“The EIA crude oil inventory posted a larger-than-expected headline decline of 4.55 million barrels versus an expected 1.6 million draw,” said OANDA senior market analyst, Ed Moya.
All-important iron ore and copper prices have continued to march north amid supply concerns.
FastMarkets reported that heavy rains in Brazil’s major mining areas are having an impact on global supply and propping up iron ore prices.
Broader sector moves aside, Crown (ASX: CWN) is making headlines after receiving a revised non-binding proposal from Blackstone. The offer represents a 60 cent per share increase compared to the previous offer of $12.50 per share. The company’s stock is up 8% to $12.56.
On the more speculative end of town, Brainchip (ASX: BRN) rallied for a fifth consecutive session. The stock is now up 93% this year.
The local healthcare sector might be impacted by negative news coming out of the European market, where shares in Dutch health tech giant Philips dove -14.8%. The company flagged that global supply chain shortages would hit its bottom line and a ventilator recall needed to be expanded.
Biotechnology company Polynovo (ASX: PNV) has retreated -5.5% after rallying 25% on Tuesday. The jump in share price was prompted by an earnings update, where the company achieved record quarterly sales.
Afterpay (ASX: APT) is down -2.4% after Block shares fell -2% overnight.
Investors can begin counting down the days for Afterpay, as its last trading day will be on Wednesday, 19 January.
Finance Writer & Social Media
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