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Morning Research Notes - 26.08.24
On Friday, U.S. stock indexes remained stable exhibiting modest gains. Small-cap stocks showed resilience with regional banks experiencing mixed performance, as investors awaited crucial guidance from Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole Economic Symposium. Meanwhile, commodity prices showed mixed movements: Spot gold saw a notable increase of 1.1%, reaching $US2512.59 per ounce. Meanwhile, Brent crude experienced a rise of 2.3%, bringing its price to $US79.00 per barrel. In contrast, iron ore prices declined by 1.5%, settling at $US95.75 per tonne.
On Friday, U.S. stock indexes showed notable stability with the S&P 500 rising by 0.3% and the Dow Jones Industrial Average gaining 0.4%. Small-cap stocks, represented by the Russell 2000, also demonstrated resilience, advancing by 0.5%. Meanwhile, regional banks experienced mixed results; the KBW Regional Banking Index increased by 0.2%, reflecting some optimism, while individual bank stocks showed varied performance due to concerns over how potential interest rate adjustments might impact their profitability. The market’s steadiness was largely driven by anticipation of Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Symposium, which investors hoped would provide clarity on future monetary policy.
The Australian market broke its bullish trend on Friday, with the ASX 200 closing 0.04% lower. The day's performance was mixed across indices: Materials, Information Technology and Utilities sectors declined by 0.66%, 0.39% and 1.34%, respectively, while Financials and Healthcare experienced growth in prices of 0.07% and 0.58%. Commodity markets experienced a bullish trend on Friday, with Aluminium, Copper, Zinc and Nickel closing 1.13%, 0.12%, 0.48% and 0.49% higher respectively.
Chart of the day
Shareholder activism is increasingly influencing corporate strategies and policies, as recent trends show a notable rise in its impact. The data reveals that shareholder activists are successfully driving change in companies by pushing for more sustainable and inclusive practices. This activism often leads to significant shifts in corporate governance and operational strategies, reflecting a growing emphasis on environmental, social, and governance (ESG) issues. The aftermath of such activism includes more robust disclosures, enhanced sustainability efforts, and greater accountability from companies. This trend underscores the rising power of shareholders in shaping corporate behavior and aligning it with broader societal expectations.
Source: McKinsey & Company
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