ASX 200 rallies; Domino's, Woodside, Qantas jump; IAG to weigh High Court ruling

ASX rises in its biggest daily gain in more than a week. Qantas rallies on upgrades, Woodside leads big energy gains, IAG to access impact of High Court call and Domino's roars.

Fears of a US rate hikes-led global recession and Wall Street’s surprise rebound are influencing local investors. Picture: Gaye Gerard

Welcome to the Trading Day blog for Friday, October 14. The Australian sharemarket has surged to its biggest gain in more than a week as it tracked similar gains on US markets after the release of inflation data.

The S&P/ASX 200 index closed 1.8 per cent, or 116.19 points, higher to 6758.80. For the week, the index fell 0.1 per cent.

On Wall Street, the S&P 500 gained 2.6 per cent, the Nasdaq rose 2.2 per cent and the Dow Jones Industrial Average added 2.8 per cent.

The rebound followed sharp falls following the release of official US CPI data for September, which showed core inflation – stripping out volatile food and energy prices – at 6.6 per cent, a 40-year high, and headline inflation at 8.2 per cent.

US 10-year bond yields rose to 3.96 per cent and US 2-year yields lifted to near 4.48 per cent. 

Oil prices are higher with the global benchmark Brent crude 2.3 per cent stronger at $US94.57 per barrel and US Nymex up more than 2 per cent to $US89.11 per barrel.

Iron ore futures down 0.8 per cent to $US95.40 per  tonne.

The dollar was near US63.03c at the open.