Australia

The Australian share market is poised to open higher after Wall Street rallied overnight from its post-rate rise dip.

The SPI200 futures contract was up 28 points, or 0.45 per cent, to 6198 at 8.30am Sydney time on Friday.

The Australian dollar was worth 72.07 US cents, down from 72.26 late Thursday and more than a cent lower since Wednesday as the greenback strengthens thanks to the US Federal Reserve rate rise and in anticipation of yet more hikes.

The ASX had closed lower on Thursday, dragged down by mining and banking stocks after commodity prices weakened and the royal commission's interim report looms.

Local financial stocks could react on Friday, when the interim report is scheduled for release, although the market has already priced in the revelations heard at the royal commission and further impact of any recommendations may not be felt until next week.

US share markets lifted overnight Thursday, helped by robust economic growth and a rally in the shares of Apple and Amazon.

The Dow Jones Industrial Average rose 54.65 points, or 0.21 per cent, to 26,439.93, the S&P 500 gained 8.03 points, or 0.28 per cent, to 2914 and the Nasdaq Composite added 51.60 points, or 0.65 per cent, to 8041.97.

Apple rose 2.5 per cent at one point, the biggest boost to the three main US stock indexes after

JP Morgan re-started coverage of the stock with an "overweight" rating.
Amazon rose 1.8 per cent after brokerage Stifel talked up its businesses.

Locally, banking royal commissioner Kenneth Hayne QC will focus on ensuring banks are lending money responsibly when he hands down his interim report.

Asia

Shares in Hong Kong closed lower on Thursday after Hong Kong raised its base rate, prompting commercial banks to lift their benchmark rates for the first time in 12 years, and as new data showed slowing industrial profit growth in China.

The Hang Seng index ended down 0.4 per cent at 27,715.67, while the China Enterprises Index closed 0.4 per cent weaker at 10,938.97 points.

Hong Kong commercial banks raised their benchmark lending rates on Thursday for the first time in 12 years, increasing the cost of home mortgage repayments in one of the world's most expensive property markets.

China's main Shanghai Composite index closed down 0.5 per cent at 2791.77 points, while its blue-chip CSI300 index ended down 0.4 per cent.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.1 per cent, while Japan's Nikkei index closed 1 per cent weaker.

Europe

European shares rose slightly on Thursday, reversing initial losses, as anxiety over political stability in Italy appeared to ease just hours before a cabinet meeting to set budget targets.

Italian stocks came off lows but remained in negative territory, ending down 0.6 per cent, while the broader pan-European STOXX 600 index rose 0.4 per cent to a one-month high, having earlier lost as much as 0.6 per cent.

In London the FTSE rose 0.5 per cent; in Paris, the CAC rose 0.5 per cent, and Germany’s DAX gained 0.4 per cent.

North America

Wall Street has climbed, helped by gains in Apple, Alphabet and Facebook, as well as the US Federal Reserve's confidence in the strength of the economy after it raised rates for the third time this year.

Eight out of 11 sectors rose, with the S&P 500 communication services index, recently renamed and reconstituted with Facebook, Google-parent Alphabet and other internet and media stocks, jumping 0.80 per cent.

Alphabet rose 1.20 per cent and Facebook climbed 1.13 per cent, both helping lift the S&P 500.

Apple rose 2.05 per cent after JPMorgan started coverage of the stock with an "overweight" rating, citing the iPhone maker's quicker-than-expected move to a services business.

While raising interest rates on Wednesday, the Fed left its monetary policy outlook for the coming years largely unchanged. Stocks closed lower after the rate hike, but on Thursday some investors refocused on the central bank's confidence in the economy's growth.

Adding to feel-good sentiment was data showing economic growth accelerated in the second quarter at its fastest pace in nearly four years as previously estimated.

Amazon.com gained 1.93 per cent after upbeat comments from brokerage Stifel about the company's retail, cloud, and advertising businesses. The online retailer opened a brick-and-mortar store in New York City on Thursday.

Starting on Monday, the telecommunications sector was renamed "communication services" and reconstituted with major internet and media companies alongside AT&T and other telecoms. So far this week, the S&P 500 communication services index has gained 1.5 per cent, more than any other sector index.

Accenture fell 1.69 per cent after the consulting and outsourcing services company's full-year profit fell short of analysts' estimates.

Cruise operator Carnival Corp tumbled 4.84 per cent after its fourth-quarter forecast missed estimates.

Conagra Brands slumped 8.54 per cent after the packaged food company posted quarterly revenue that missed analysts' estimates.

 

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Morningstar with AAP, Reuters and Bloomberg 

Lex Hall is content editor, Morningstar Australia

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