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Wall Street rallied overnight after the Federal Reserve maintained the U.S. cash rate at 5.25%-5.5% for another term as was expected by economists amid inflation continuing to fall in the world’s largest economy. The Dow Jones rose 0.7%, the S&P500 added 1.05%, and the tech-heavy Nasdaq has the biggest rise of 1.64%. The Fed’s decision to maintain and not hike the US cash rate was received positively by markets however Fed Chair Jerome Powell did not rule out further rate hikes in future if inflation rebounds. Positively, economic data released in recent times all point toward economic stability while inflation also cools which supports the idea of a soft landing as opposed to a recession, with the latest ISM Manufacturing index showing manufacturing activity contracted more than expected in October.

Over in Europe, markets closed higher on Wednesday ahead of the Fed’s interest rate decision with the STOXX600 rising 0.7%, buoyed by retail stocks climbing 1.7%. Germany’s DAX added 0.76% on Wednesday, the French CAC lifted 0.68%, and in the UK, the FTSE100 rose 0.28%.

Shares in Aston Martin plunged 13% yesterday after the luxury car maker reported a bigger-than-expected quarterly loss and cut its volume target. The European rally also came off the back of fresh euro zone inflation data being released showing inflation in the region hit a 2-year low of 2.9% in October.

Locally yesterday, the ASX200 extended its green run into the midweek session, closing the day up 0.85% led by real estate stocks lifting 1.85%, while the health care and energy sectors added 1.45% and 1.13% respectively. The local rally was driven by strength in the US on Tuesday and the big miners rose on the back of the rising price of iron ore.

What to watch today:

• Ahead of the local trading session here in Australia, the SPI futures are anticipating the ASX to open Thursday’s session up 0.76%, extending the green run into a third session.
• On the commodities front this morning, oil is trading 0.15% lower at US$80.90/barrel, gold is flat at US$1982/ounce and iron ore is up 1.23% at US$123.50/tonne.
• AU$1.00 is buying US$0.64, 96.51 Japanese Yen, 52.22 British Pence and NZ$1.09.

Trading Ideas:

• Bell Potter has increased the rating on Infomedia (ASX:IFM) from a hold to a buy and maintain a 12-month price target of $1.75 ahead of the company’s AGM in November where it is expected at least reiterate the FY24 revenue guidance. Bell Potter now sees reasonable value in the stock with the FY24 PE ratio back around 30x and some prospect of a soft upgrade is expected at the at the upcoming AGM.
• And Bell Potter has downgraded Ingham’s Group (ASX:ING) from a buy to a hold and have slightly increased the 12-month price target to $3.95 from $3.90 following the release of a first quarter trading update from Australia’s leading poultry producer. The update was ahead of Bell Potter expectations including underlying EBITDAL guidance of $128m, underlying NPATL of $71m, and the expectation of 2H24 to be below 1H24 reflecting traditional seasonality in the business and feed cost inflation. Alternative meats like beef and lamb prices have also contracted while poultry prices have outperformed competing animal protein sources over the last 18-months. The downgrade to a hold is in light of recent share price strength as well as exposure to feed cost inflation again emerging without comparable inflation in competing protein products.