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Morning Research Notes - 24.07.24
Market indices dipped, with more Megatech earnings ahead, as Alphabet and Tesla reported quarterly earnings. Brent (oil) traded 1.4% lower, with the current price per barrel sitting at $81.23. Spot gold increased by 0.3%, with the current price per ounce standing at $2404.42. Volatility, as measured by the VIX index, decreased by 1.3% to $14.72.
On Tuesday, the S&P 500, Dow Jones, and NASDAQ Composite indices closed lower due to cautious trading ahead of big tech’s quarterly earnings. Alphabet and Tesla are among the ‘Magnificent 7’ megacap tech stocks set to report earnings, with Alphabet’s results expected to shed light on the benefits of artificial intelligence, and Tesla’s results anticipated to reveal how the company is handling a decrease in demand and its progress on AI-driven autonomous driving and robotaxis. Coca-Cola and GE Aerospace raised their annual profit forecasts due to strong demand, while General Motors and United Parcel Service fell short of expectations.
The ASX 200 has increased by 0.50% on Friday, with the market experiencing a upward trend, with Utilities increasing by (0.60%), Financials by (0.84%), Information Technology by (1.63%), and Health Care by (1.37%) we also saw a fall in Materials by (-0.45%). The commodity market saw a downward trend. Zinc decreased by (-0.83%), Copper fell by (-0.82%), Nickel declined by (-0.54%), and Iron Ore fell by (-2.4%). Aluminium saw an increase in prices by (0.22%).
In other news, Perpetual’s AUM declines, Flight Centre expects $316m to $324m FY24 profit, and Pilbara revenue jumps 58pc to $305m. (Source: AFR)
Chart of the day
The Australian share market has been reaching new record highs, despite various economic and geopolitical concerns. This upward trend is fueled by renewed optimism about potential interest rate cuts from the Federal Reserve and the Reserve Bank of New Zealand. There’s also a noticeable shift from tech shares to value and cyclical shares. However, it’s important to note that since 2009, Australian shares have been underperforming when compared to global shares. This underperformance has been influenced by several factors including the impact of rate hikes on Australian households, concerns about tensions with China, and a relatively low exposure to tech stocks. While some of these influencing factors have diminished over time, it’s still too early to confidently conclude that this period of underperformance has come to an end.
Source: Livewire markets
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