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Morning Research Notes - 11.07.24
US markets gained on Wednesday, led by the tech sector, benefitting from Powell's dovish testimony to Congress. Brent (oil) traded 0.5% higher, with the current price per barrel sitting at $85.09. Spot gold also gained 0.3%, with the current price per ounce standing at $2371.23. Volatility, as measured by the VIX index, increased by 2.7% to $12.85.
The S&P 500 closed above 5,600 for the first time, ending at 5,633.50, led by tech stocks like Apple and Nvidia amid rate cut optimism following Fed Chair Jerome Powell's testimony. The Nasdaq and Dow Jones Industrial Average also saw gains, closing 1% higher. Apple rose 1% on expectations of increased iPhone shipments in 2024, while Microsoft gained 1% despite relinquishing its observer seat on the OpenAI board due to regulatory scrutiny.
Nvidia surged over 2%, boosting the tech sector. Powell reiterated his outlook for a soft landing for the U.S. economy despite ongoing restrictive monetary policies. Attention now turns to the upcoming consumer price index inflation data, with expectations of a slight increase. Energy stocks climbed as U.S. oil inventories fell unexpectedly, with Baker Hughes, Chevron, and Phillips 66 leading the sector's gains.
The ASX 200 decreased by 0.17% on Wednesday, with Materials (-1.20%), Utilities (-1.17%), Health Care (-0.14%) and Info Tech (-0.17%) closing lower, whereas Financials (0.21%) closed higher. Commodity markets ended the day broadly lower, with Zinc (-1.85%), Copper (-0.47%), Aluminium (-0.28%), Nickel (-0.88%) and Iron ore (-3.8%) all experiencing losses.
In other news, Global X launches Australian Bank Credit ETF, Iron ore slumps to $US105, and Kelly Partners flags strong adjusted profit growth.x (Source: AFR)
Chart of the day
Today's chart shows high-purity alumina demand by sector. High-purity alumina (also known as HPA) is a refined aluminium oxide which has a purity above 99.99% and can be used within various products. HPA's heat resistance and conductivity make it ideal for usage in a raft of different technologies, for example it is used in semiconductors to insulate chips and within lithium-ion batteries to separate the anodes and cathodes of the cell. It is a critical material for manufacturers in those sectors, yet is a relatively unknown material.
Source: Livewire, Grand View Research
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