Signs that US interest rates could remain on hold boosted the Australian share market on Friday, with the All Ordinaries (INDEXASX: XAO) and S&P/ASX 200 (INDEXASX: XJO) both gaining 1.1% with the energy sector the only detractor.
The most interest rate sensitive sectors, being property, industrials and healthcare all gained strongly, adding more than 2% each, with Charter Hall Group (ASX: CHC) and Scentre Group (ASX: SCG) adding 3.7% and 4.5% as lower rates mean stronger property valuations. But it was all about Block Inc CDI (ASX: SQ2) owner of Square Payments and Afterpay Limited (ASX: APT), as shares gained more than 25% as the dual-listed company increased earnings expectations and guided to a significant shift higher in profit margins as the business matures.
Charter Hall share price
Shares in Treasury Wine Estates Ltd (ASX: TWE) fell 8.8% after finalising the details of a capital raising for its US acquisition, while Macquarie Group Ltd (ASX: MQG) managed a positive result, up 1.8% despite a 38% fall in profit on the back of a slowdown in asset sales.
The story was similar across the week with Origin Energy Ltd (ASX: ORG) dragging the utilities sector down 4.6%.
The All Ords managed a 2.8% gain for the week and the S&P/ASX200 3.1%.
Markets surge to best month since 2022: China sales slow
US share markets continued their recent rally, pushing higher on hopes that Federal Reserve Chair Powell’s comments meant an end to monetary policy tightening.
The result was a 0.7% gain in the Dow Jones Industrial Average (INDEXDJX: .DJI), 0.9% in the S&P 500 (INDEXSP: .INX) and 1.4% in the Nasdaq Composite (INDEXNASDAQ: .IXIC), capping a strong week for all three benchmarks.
In a continuation of the recent trend, labour market results weakened, with just 150,000 new jobs created, while the services conditions index came through far weaker than expected. But all eyes were on the technology sector, with Apple Inc (NASDAQ: AAPL) finally reporting, and once again seeing a fall in revenue. Despite the slight weakening, the giant only fell 0.5% on the day.
Apple share price
All eyes were on China sales, which disappointed, while both Mac and Wearables sales fell, however, the quarter only saw one week of sales for the new iPhone 15.
It was the opposite story for Block Inc (NYSE: SQ) which gained 10% on the US market after the company reported positive progress towards profitability and a significant jump in earnings.
Across the week, the Dow gained 5.1$, the S&P 500 5.9% and the Nasdaq 6.6%, the best since November last year.