Australian shares are set to open higher, bolstered by a renewed rally on Wall Street as tech shares lured buyers. Nvidia and Apple each rose, poised to reset their respective record highs.
While elements of investor behaviour and market pricing currently rhyme with previous bubbles, Goldman Sachs global strategist Peter Oppenheimer said markets are not there yet.
“Importantly, bubbles tend to develop when there is a combined surge in stock prices and valuations to an extent that the aggregate value of companies associated with the innovation exceed the future potential cash flows that it is likely to generate.
“Valuations of the technology sector are becoming stretched but not yet at levels consistent with historical bubbles,” he said in a note.
Goldman’s view consistent with what Renaissance Macro Research told its clients: “The S&P is approaching our 6800-year-end target, but rather than exiting, it’s time to reassess. Sentiment gauges like the put-call ratio and bull-bear spread are flashing near-term caution—consistent with signs of buyer frenzy and stretched positioning. These signals don’t imply a crash, but they do suggest watching for a modest pullback as sentiment cools.”
Market highlights
ASX 200 futures are pointing up 40 points or 0.5 per cent to 9011.
All US prices near 3.30pm New York time.
AUD +0.1% to US65.87¢Bitcoin +1.8% to $US123,679On Wall St: Dow +0.04% S&P +0.6% Nasdaq +1.1%VIX -0.81 to 16.43Gold +1.4% to $US4041.43 an ounceBrent oil +1.1% to $US66.16 a barrelIron ore +0.1% to $US104.00 a tonne10-year yield: US 4.13% Australia 4.36%Today’s agenda
There is no local data scheduled for release on Thursday. REA Group is set to hold its annual general meeting starting at 9am AEDT.
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