ASX hits 8-week high

The news: The Australian sharemarket finished higher on Wednesday, buoyed by the latest US inflation data which boosted hopes interest rate hikes may have peaked. The benchmark ASX 200 gained 1.42% to close at 7,105.90, its highest closing level in eight weeks. The All Ordinaries closed up sharply, at 1.52%. The Aussie dollar is buying 65 US cents, higher than yesterday.

The numbers: The top performing stocks in the ASX 200 index were Centuria Capital Group and Charter Hall Group, up 11.46% and 10.33% respectively. Over the last five days, the index has gained 1.58%, but is virtually unchanged over the last year.

The context: Stocks have rallied worldwide after the US Consumer Price Index jumped 3.2% in the year through to October, down from 3.7% in September. Tomorrow the ABS will release unemployment figures and Sonic Healthcare, the Mirvac Group, Seven Group Holdings, The a2 Milk Company and REA Group will hold AGMs.