Closing Bell: Local bourse gained, but that new IPO was just insane

The S&P/ASX200 is up about 0.3% to 7,291. on Thursday, with the tech names leading the charge,  after a decent NASDAQ rally and a good run overnight in the US and European share markets.

Our small cap and emerging companies (ASX:XEC) index has performed well, climbing over 17 points, closing 0.7% higher.

Over the last five days, the ASX200 benchmark has lifted by 3%.

It’s been a good run. And now Ben Udy at Capital Economics says all this action and the ongoing strength in underlying inflation will lead the Reserve Bank to start lifting rates rates from June and not a few months later as previously thought..

Capital  now expect the RBA to raise the cash rate to 1.75% by August next year.

“We have brought our first rate hike from August to June,” Udy said in a note today. “Further evidence that the Australian economy is rapidly heating up suggests the RBA may hike even earlier than we had previously assumed.”

That brings Capital in line with what the financial markets anticipate, but earlier than the analyst consensus of Q3. So make your trades accordingly.

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