ASX on track for best week since March as resources edge higher

Lithium developer Vulcan Energy jumped 7.5 per cent on Friday morning after signing an agreement with Italian renewable energy firm Enel Green Power to develop geothermal lithium in Italy.

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Wall Street jumped across the board on Thursday, extending a winning streak that has the market on pace for a weekly gain.

The S&P 500 rose by 1.5 per cent, recording a fourth-straight day of gains. The Dow Jones Industrial Average added 1.1 per cent and the Nasdaq jumped by 2.3 per cent.

Bitcoin also surged, rising 6.5 per cent to $US21,631.89 on Bitstamp at 9.58am AEST.

Companies that benefit the most from a healthy economy led the gains, with technology stocks doing much of the heavy lifting. Apple rose 2.4 per cent.

The energy sector also rose as US crude oil prices climbed 4.3 per cent in a reversal from Wednesday’s slump. Exxon Mobil rose 3.2 per cent.

Major indices are on track for weekly gains in what has been turbulent trading over the last several months.

The bond market, though, continues to signal anxiety over a potential recession with new data showing that the number of Americans applying for unemployment benefits topped the 230,000 mark for the fifth consecutive week. While claims remain low, last week was the highest level of claims in almost six months.

The yield on the 10-year Treasury rose to 3.01 per cent from 2.91 per cent late Wednesday. The yield on the two-year Treasury is above the 10-year yield, a relatively rare thing seen by some investors as an ominous sign.

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The job market in the US has been a key focus for investors this week as they look for any clues on how inflation is impacting the economy. On Wednesday, the US government reported that employers advertised fewer jobs in May amid signs that the economy is weakening and there are already signs that retailers have pulled back on hiring.

A weakening of the broader jobs market, which has remained strong through the pandemic recovery, could signal that inflation is cooling off. Investors will get a clearer picture on Friday when the more detailed June jobs report is released.

Markets in Europe ticked higher on a day that British Prime Minister Boris Johnson announced that he was resigning amid a flood of resignations from his Conservative Party’s members.

with AP