All sectors except Communication services closed in the green. There were several different things on Friday that led to this move.
President Joe Biden announced an update on the Vaccine roll out they are aiming for 200 million Covid Vaccination shots to be distributed in the first 100 days. This saw reopening stocks shoot higher.
Crude pushed back above $60 with disruptions to supply due to the Suez Canal blockage.
Core PCE numbers came in worse than expected which is another indication that inflation is not rising yet.
The FED also announced the banks will be able to start buying back share and normalise dividends by June, this is later than expected but, is a reminder to all what is coming later this year. After the GFC one of the reasons the US stock market rose was because companies were borrowing money and buying back their shares. This makes sense to do whilst interest rates are low. If rates go back up the companies can raise capital from the market and pay the debt back off as it hits maturity.
The XJO is expected to open higher near 6850 this morning, following a strong move in the U.S on Friday that had them testing their all-time highs. U.S futures have ticked into the red, and if they remain so during our session today, it may dampen our gains.
6850 is the top of the short-term channel we have failed to push through on at least four consecutive accounts since late Feb. This morning there is a good chance we see a break considering the strength we are seeing overseas in the short-term. If we manage this, then next target is our post-pandemic highs of roughly 6950.
The AUD remains quite low, and some metals, most notably iron ore, rallied on Friday. This hopefully allows our materials to continue higher from here.
The next couple of weeks are short weeks with the easter break keeping the Friday and Monday closed. This is a good opportunity to enter time decay strategies, though be mindful market typically rise through this short period.
US share rose strongly on Friday, with the major S&P 500 index rising to its all-time high resistance level and recording its highest ever closing level. This was despite a report from Goldman Sachs that they had conducted a series of massive off-market stock sales before the start of the session.
There was a lack of substantial economic data from the US on Friday, but we did see personal spending data for February, which showed a bigger drop in spending than was expected, which may have helped to ease inflation worries. Every major sector closed strongly higher on Friday, with Oil & Gas and Basic Materials stocks the strongest performers, with each of these sectors rising close to three percent. Banking stocks also performed well on the night, with the Fed Reserve announcing that banks could resume share-buybacks and rising dividends from the end of June onwards.