• The ASX is set to rally on Friday
  • Wall St had its best one-day move since April 2020
  • US CPI rose less than expected

Local shares are set to surge more than 2% at the open on Friday, tracking the big rally in New York overnight.

Wall St had its biggest one-day rally since April 2020 as investors reacted to the slower than expected US CPI data.

The S&P 500 surged by 5.54%, the Dow Jones by 3.70%, and tech heavy Nasdaq by 7.35%.

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%.

Increase in prices has softened across the board, with cars, apparel, and even energy softening.

Futures traders are now pricing in a rate of 4.90% by May 2023, compared to 5.05% before the report came out.

“This inflation was a good sign that the Fed is on the right path for winning this war with inflation, but there will still be a lot of variables thrown its way over the next couple of quarters,” said OANDA analyst Edward Moya.

Shares of big tech stocks jumped as Apple rose by 9%, Microsoft by 8%, and Amazon by 12%. Major currencies also rose against the US dollar, with the AUD now trading at US66.30c.

Gold price also surged after the inflation report. Spot bullion was up 3% to US$1,755 an ounce.

Even cryptos made a huge rebound after the FTX debacle, as BTC rallied 13% and ETH by 21%.

“FTX contagion risks remain elevated and while today’s broad-based crypto rally is rather impressive, investment into cryptocurrencies will likely struggle here as too many key institutional investors and crypto companies have money tied up with the bankruptcy bound exchange,” said Moya.

5 ASX small caps to watch today

Proteomics International (ASX:PIQ)
PIQ has secured a patent for PromarkerD predictive test for diabetic kidney disease in Hong Kong. The patent joins those already granted for the US, Europe, Australia, Brazil, Canada, China, Indonesia, Russia, Singapore, India and Japan. The PromarkerD intellectual property portfolio now covers 64% of the global population living with diabetes.

My Food Bag (ASX:MFB)
The board announced the appointment of Mark Winter as the permanent CEO of My Food Bag, effective immediately. Winter has been the interim CEO of My Food Bag since the departure of Kevin Bowler in October, and before that was the company’s chief financial officer.

Pure Resources (ASX:PR1)
Pure says it has received several new project opportunities and continues to conduct high-level internal assessments on projects that fit the company’s objectives across sectors such as lithium, nickel, copper and rare earths. The company is buoyed by two successful initial exploration programs at two of their battery metals projects for nickel and copper, and is following up with the second rounds of exploration on these projects.

Caspin Resources (ASX:CPN)
RC and diamond drilling is underway at Yarawindah Brook project in WA. Drilling expected to continue over summer season with multiple objectives including extensions of high-grade PGE including rhodium mineralisation at Upper Serradella, and the identification of the basal intrusion contact at Lower Serradella.

Tietto Minerals (ASX:TIE)
Tietto added more high‐grade gold intercepts from infill and depth extension drilling at AG Core, part of its 3.45Moz Abujar Gold Project. Results include 19m @ 21.94g/t Au from 270m, and 12m @ 2.71g/t Au from 266m.