ASX Large Caps: Shares enjoy all-sector rally on expectation Fed rate hike may peak soon

• The ASX 200 tracked Wall St higher
• RBA says it wants households to reduce spending to curb inflation
• China released a handful of economic data

Local shares are tracking Friday’s rally in New York as the ASX 200 closed Monday 1.6% higher.

All sectors were in the green, with Mining, Healthcare and Energy leading the way.

Shares on Wall St surged after reports the Fed would soon be ready to debate on how to slow the pace of tightening after the November FOMC meeting on 2nd November.

Treasury yields fell on the news while most major currencies appreciated against the USD.

The AUD rallied to as high as US64.2c before petering off in Asian hours today, back to US63.8c.

RBA assistant governor Chris Kent said today the central bank is not worried about imported inflation, but acknowledged that inflation in advanced economies was too high.

Dr. Kent also said the RBA wants Aussie households to reduce spending to keep inflation in check.

“We’re going to be monitoring the effects of increased rates on household spending, and remember, we do actually want it to have an effect on household spending to rein that in somewhat,” he said.

Meanwhile, China released a smorgasbord of economics data this morning.

The long awaited GDP data was finally released after a delay of one week. China’s GDP grew 3.9% from July to September YoY, beating expectations of 3.3%.

The country’s unemployment has however ticked up to 5.5% in September (versus 5.3% in August), and retail sales growth slowed to 2.5% in September (versus August’s 5.4% increase).

In Mining, the critical minerals sector led once again with Lynas Rare Earths (ASX:LYC) climbing by 6%, Pilbara Minerals (ASX:PLS) by 6% and IGO (ASX:IGO) by 2%.

Lithium battery maker Novonix (ASX:NVX), who was in hot water last week with the ASX over disclosure issues, gained 25% today.

US-based lifestyle App maker Life 360 (ASX:360) rose another 12% after gaining 5% on Friday. The company had announced several changes to pricing for some of its US based premium offerings.

Looking ahead to tonight’s session on Wall St, US and EU manufacturing PMI are scheduled to be released.

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Gold miners Evolution Mining (ASX:EVN) and Gold Road (ASX:GOR) rose 6-8% on no specific news.

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