Details included the “super core” CPI, which excludes energy, food, and shelter also increasing 0.4 per cent (0.3 per cent last reading) while a 4.4 per cent jump in the prices for used automobiles and a 3.0 per cent rise in the price of gasoline were key contributors.
The United States Federal Reserve meets in June to discuss its next policy setting.
One of the large cap movers buoying the S&P index was Alphabet (parent company to Google) which gained 3.8 per cent at the time of writing.
Google hosted a developer conference overnight where it announced a range of new gadgets and updates, including a new Google Pixel Fold phone which will be priced in the range of US$1,799.
Gaming company Roblox was also part of the batch of companies to report quarterly earnings this morning, sitting up a lofty 8.8 per cent higher than yesterday following larger than anticipated bookings and daily active user numbers.
Although, the company did report a loss of 40 cents per share as it continues to look toward profitability, two years on from its initial public offering (IPO).
Further, Twitter announced it would be launching an array of new elements within the messaging feature of its platform.
In a tweet on Wednesday, Twitter CEO Elon Musk said the latest version of Twitter would contain the ability to reply directly to any previous message thread, as well as contain the ability to send encrypted messages.
Encrypting messages on the platform would mean only the sender and receiver would be able to read the message – barring the company from being able to access its users’ messages.
Rest of the World
Ireland, home to offices of many of the worlds larger multinational firms due to its lower 12.5 per cent corporate tax rate, is toying with the idea of setting up a sovereign wealth fund to channel its tax receipts from firms including Alphabet, Amazon and Meta.
Finance minister Michael McGrath submitted a paper to the Irish Parliament overnight, looking to further increase the country’s current surplus where multinational-dominated sectors now account for more than half of GDP.
New Zealand
New Zealand equities moved higher as the index lifted to 11,987 points, up 0.8 per cent.
Tourism Holdings (+2.1 per cent) made up some of the ground lost on Tuesday as the company fell close to 10 per cent after hosting an investor day.
Although the company was confident it would hit its maiden full year 2023 guidance after merging with Apollo Tourism, it pointed toward the potential for missed revenue as some sales activity, usually expected to occur in the fourth quarter, could fall into the first quarter of fiscal year 2024.
Other stock-specific news included second hand car retailer and financier Turners Automotive (+1.2 per cent) releasing details to the market from an investor presentation.
Highlights included the reiteration of full year guidance for NPAT of at least $43 million, alongside positive updates on pricing and volumes within the current re-sale environment. Conversely, the company did highlight a tick up in industry auto loan arrears, talking to the current macroeconomic constraints as higher interest rates continue to impact the New Zealand consumer.
Steel & Tube (+2.0 per cent) lifted despite posting a 10-month fiscal year 2023 update which included an expectation for volumes, revenue and profitability measures all down significantly on the same period last year.
Some optimism may have come through commentary surrounding the ongoing impacts of the Auckland floods, where a pipeline of potential infrastructure projects (quantified by the company of $9-14.5 billion) have arisen and which Steel & Tube may have a part to play in.
Australia
The ASX traded with volatility as investors digest potential ramifications of the federal budget which was announced on Monday. The index finished down 0.1 per cent to 7,255 points.
Paladin Energy (+8.4 per cent) was the winner of Wednesday’s trading as the company soared on a higher uranium price overnight.
Lynas Rare Earths Corporation was also one of the market leaders following a positive media release earlier in the week in which the company confirmed Malaysian authorities had extended its current operating licence at one of its sites for another six months until January 2024.
That reversed previous advice Lynas would have to shut down its operations this year.
On the flipside, large cap and regional banks were the main detractors from index performance as the Bank of Queensland and National Australia Bank were bottom performers with losses of 4.2 and 4.0, respectively.
In other equity market activity, potential IPO candidate Virgin Australia reportedly made as much as A$730 million from operations over the past 12 months.
The company’s first profit in close to a decade, with its staff sharing in the spoils with bonusses for nearly all of the company’s 7,000 employees said to be paid out.
Private equity company Bain, owner of more than 90 per cent of the company, is said to be looking for potential public investors.
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