Morning Report 10 Feb 22: ASX to extend gains as stoic Wall St jumps ahead of inflation figures

US sharemarkets were firmer on Wednesday with a fall in bond yields supporting growth stocks. Upbeat earnings and an easing of Russia-Ukraine tensions supported investor sentiment. Of the 316 companies in the S&P 500 that have reported earnings to date, 77.8% reported above analyst expectations, according to Refinitiv data. Shares in Microsoft rose 2.2% with Apple up 0.8% and Tesla up 1.1%. Investors await Thursday's inflation data. At the US close, the Dow Jones index was up by 305 points or 0.9%. The S&P 500 index rose by 1.5%. And the Nasdaq index rose by 296 points or 2.1%.

US treasuries were mixed on Wednesday. There was an easing of Ukraine-Russia tensions and traders await latest inflation data. US Treasury sold US$37 billion in 10-year notes at a yield of 1.905% into strong demand. Treasury will sell US$23 billion in 30-year bonds on Thursday. US 10-year yields fell by 1 point to near 1.95%. US 2-year yields rose 3 points to near 1.37%.

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), and a market participant of ASX Limited and CHI-X Pty Limited, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited. Any advice contained in this report is general advice only and is not a recommendation to buy, sell or hold any securities, property, real estate or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. Before making any investment decision, you should consider your own investment needs and objectives and consider seeking financial advice. Past performance is not a reliable indicator of future performance. This report is produced by Commonwealth Securities Limited based on information available at the time of publishing.  We believe that the information in this report is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report.