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Morning Research Notes - 16.07.24
US markets closed broadly higher on Monday as Fed Chair Jerome Powell continued his dovish rhetoric, noting the progress that the US economy had made in curtailing inflation. Brent (oil) traded 0.1% lower, with the current price per barrel sitting at $84.95. Spot gold also gained 0.5%, with the current price per ounce standing at $2422.66. Volatility, as measured by the VIX index, increased by 5.3% to $13.12.
On Monday, the Dow Jones Industrial Average reached a record high of 40,211.72, driven by increasing expectations of a September rate cut following Federal Reserve Chairman Jerome Powell's optimistic remarks on inflation progress. The S&P 500 and NASDAQ also saw gains. Former President Donald Trump survived an assassination attempt, potentially boosting his 2024 election prospects, and named Senator J.D. Vance as his vice-presidential running mate. In corporate news, Goldman Sachs reported strong quarterly earnings, BlackRock reached a record $10.65 trillion in managed assets, and Apple shares rose after an upgrade from Loop Capital. Conversely, Macy's shares fell sharply after ending acquisition talks.
The ASX 200 increased 0.73% on Monday, with Materials (0.55%), Utilities (0.54%), Health Care (0.79%), Info Tech (1.39%) and Financials (0.70%) all closing higher. Commodity markets ended the day mixed, with Zinc (1.18%), Iron ore (0.6%) and Copper (0.07%) experiencing gains, whilst Aluminium (-0.74%) and Nickel (-1.23%) saw losses.
In other news, Wesfarmers beefs up its board with healthcare expertise, Middle East weapons customer sends EOS revenue soaring, and HUB24 posts record inflows (Source: AFR)
Chart of the day
Today's chart shows the surplus/deficit in the copper market from 1960 to 2024. As can be observed, the copper market has been in a period of deficit for the past 14 years. which has been a catalyst for rising copper prices. 2024 forecasted deficit of 8% is set to be one of the largest on record, which again is part of the reason copper prices have seen such strong growth over the first half of the year.
Source: Livewire, International Copper Study Group
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