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ASX climbs, Wall Street and EU markets rise as Boris Johnson quits

Australia’s equity market is up today after a positive day on Wall Street, while European indices jumped following the resignation of the UK Prime Minister.

The benchmark ASX 200 rose 0.8% to 6,701. The broader All Ordinaries rose 0.9% to 6,907 shortly before 11 a.m. AEST.

The Australian dollar gained nearly 0.3% to 68.58 US cents.

The technology, consumer discretionary and healthcare sectors were the biggest gainers from the ASX 200 in early trading.

Paladin Energy, Lige360, Allkem Limited, Alumina and Liontown were the top stocks.

The biggest drags on the index were Orora, Imugene, Collins Foods, Domino’s Pizza and Magellan Financial Group.

Virgin Australia does not operate any long-haul international flights.(ABC News)

Meanwhile, the ACCC has released a draft decision, proposing to allow Virgin Australia to enter into codeshare pricing agreements with its international airline partners for five years.

This means that Virgin Australia’s international airline partners will be able to set fares for international long-haul flights that Virgin Australia can market and resell to consumers.

“The ACCC’s preliminary assessment is that these arrangements are likely to provide greater choice and convenience for consumers wishing to book international travel including connecting flights operated by Virgin Australia,” the deputy said. ACCC President, Mick Keogh.

“There will be no competitive overlap between the parties on any route under these proposed agreements, and other airlines, including Qantas, will provide competition to Virgin Australia and its partners on these long international routes. – particular letters.”

Virgin does not operate any long-haul international flights.

The ACCC is accepting submissions on the codeshare proposal until July 29.

Tech stocks rebound

Wall Street’s benchmarks ended Thursday, with the S&P 500 and Nasdaq posting their fourth straight higher closes, as traders eyed U.S. stocks after the Federal Reserve hinted at a more tempered schedule rising interest rates.

The benchmark S&P 500 closed higher in all four sessions this month after posting its biggest first-half percentage decline since 1970.

Investors were digesting the minutes of the US Federal Reserve’s June meeting, which acknowledged the risk that rate hikes would have a bigger-than-expected effect on economic growth.

The minutes also indicate that an increase of 50 or 75 basis points would probably be appropriate at the political meeting in July.

The less hawkish tone came after fears that aggressive rate hikes could trigger a recession.

Tech heavyweights rose, with Tesla up 5.5%, Google parent company Alphabet up 3.7% and Affirm Holdings and Avalara gaining 17.1% and 16.4% respectively.

“It’s starting to feel like the real money is starting to come back,” said Louis Ricci, chief trader at Emles Advisors.

“There’s no reason the market shouldn’t be down 30% yet, but we think the risk is 30% downside but three to four times higher.”

Meanwhile, a report on Thursday showed the number of Americans filing new claims for unemployment benefits rose unexpectedly last week and demand for labor was slowing as layoffs peaked. 16 months in June.

The Dow Jones Industrial Average rose 346.87 points, or 1.1%, to 31,384.55.

The S&P 500 gained 57.54 points, or 1.5%, to 3,902.62, while the Nasdaq Composite added 259.49 points, or 2.2%, to 11,621.35.

Almost all S&P sectors were up. Energy was the big winner, up 3.5% as oil and gas companies tracked the rebound in crude prices from the previous day’s 12-week low.

The Philadelphia SE Semiconductor Index climbed 4.5% after South Korea’s Samsung Electronics posted its best second-quarter profit since 2018, driven by strong memory chip sales.

In Europe, investors reacted to the announcement of Boris Johnson’s resignation as British Prime Minister. Some may be hoping his departure will mean a better relationship with Europe.

The pan-European STOXX 600 index gained 1.9%, Germany’s DAX rose 2% and Britain’s FTSE gained 1.1%.

Oil markets surged as tight supply outweighed recession fears.

Brent crude rose 3.4% and was worth US$104.10 a barrel, while West Texas crude rose 3.7% to US$102.24 a barrel.

Iron ore futures rose US$1.85 on Thursday, or 1.6%, to US$114.18 a tonne.

Spot gold rose 0.1% and sold at US$1,739.20.

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