ASX Large Caps: Local shares cruise to a 5-month high; BNPL stocks surge

The ASX gained 2.7% on Friday after a huge rally on Wall St
US CPI rose less than expected
Risk sentiment is back

The ASX 200 index is at the highest level since June after rising by 2.7% on Friday to 7,154. For the week, the ASX was up almost 4%.

Shares rallied across the board after the better-than-expected US CPI data triggered a huge rally in New York overnight.

The US headline inflation for October came in at 7.7% YoY versus forecast of 8%. It was down from 8.2% in September and noticeably better than the peak reading in June of 9.1%.

Still, figures continue to point to a broad price increase across the US economy, mainly in the services sector while prices of goods have benefited from some improvements in supply chains.

“Headline inflation seems to have peaked, but services-led price growth keeps accelerating year over year,” said Callie Cox, US Investment Analyst at eToro.

“But that’s the kind of inflation the Fed can control, because it’s more a function of demand than supply. We’re seeing early signs of a peak, and that could allow the Fed to take its foot off the break.”

Bond yields and the US dollar sank after the inflation report, pushing gold higher by 3%.

Janus Henderson’s Global Head of Fixed Income Jim Cielinski said the Fed still holds the key for equities.

“With inflation remaining stubbornly high, we think the rate will continue to rise through at least mid-2023,” Cielinski said.

“Even if the midterm elections change the balance of power in Washington, the biggest issue for investors remains inflation and how the Fed’s response will impact economic growth and corporate earnings.”

On the ASX today, all sectors except Utilities surged, with Tech gaining 4%. Tech-heavy Nasdaq finished over 7% higher overnight.

Block Inc (ASX:SQ2) jumped 12% after its NYSE-based parent rose 17% amid risk-on sentiment. Shares in BNPL rival Zip (ASX:ZIP) also gained 20% today.

Meanwhile, there are unfounded reports that Sam Bankman-Fried (SBF) has been arrested on the tarmac at airport in the Bahamas. The FTX CEO has been trying to raise US$8bn to save FTX from bankruptcy.

Looking ahead to tonight’s session on Wall St, Britain will release a slew of data including GDP growth and balance of trade.

BIG CAP WINNERS

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Code	Name	Price	% Change	Volume	Market Cap
WTC	Wisetech Global Ltd	57.86	10%	616,203	$17,143,057,961
REA	REA Group	120.64	9%	286,983	$14,663,689,915
XRO	Xero Ltd	70.165	8%	1,328,195	$9,720,764,993
EBO	Ebos Group Ltd	36.77	8%	63,766	$6,483,340,720
PME	Pro Medicus Limited	58.5	11%	281,718	$5,481,648,960
ALU	Altium Limited	36.37	8%	502,694	$4,413,939,931
SQ2	Block	101.15	12%	320,519	$3,296,655,810
NWL	Netwealth Group	13.83	11%	309,180	$3,029,054,172
ARB	ARB Corporation.	29.26	8%	186,146	$2,214,056,211
MFG	Magellan Fin Grp Ltd	9.925	9%	1,789,414	$1,664,422,472
PNI	Pinnacle Investment	9	13%	1,080,120	$1,606,912,448
CCP	Credit Corp Group	20.25	11%	474,208	$1,245,623,465
NVX	Novonix Limited	2.59	9%	4,417,524	$1,158,298,172

Pro Medicus (ASX:PME) was the best performing large cap, up 11% on no specific news.

Tech darling Wisetech (ASX:WTC) also jumped 9% on no news.

Fund managers Pinnacle Investment (ASX:PNI) and Netwealth (ASX:NWL) rose by 12% on rising stock prices.

BIG CAP LOSERS

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Code	Name	Price	% Change	Volume	Market Cap
SMR	Stanmore Resources	2.505	-6%	5,271,005	$2,397,675,317
WHC	Whitehaven Coal	7.945	-5%	20,924,903	$7,741,733,809
NHC	New Hope Corporation	5.1	-4%	10,506,829	$4,668,182,907
ORG	Origin Energy	7.545	-4%	29,643,666	$13,489,114,264
CPU	Computershare Ltd	26.305	-3%	1,996,555	$16,342,953,126
CEN	Contact Energy Ltd	6.67	-3%	249,064	$1,717,203,274
AAC	Australian Agricult.	1.69	-3%	207,270	$1,045,800,306
MXT	Metrics Master	1.91	-2%	1,012,740	$1,721,919,686
CRN	Coronado Global Res	1.9125	-2%	5,158,957	$3,269,084,774
CWY	Cleanaway Waste Ltd	2.68	-2%	5,746,780	$6,076,980,328
LFS	Latitude Group	1.33	-1%	6,988	$1,402,942,731