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Morning Research Notes - 12.12.24
US markets experienced a mixed close yesterday, highlighted by the NASDAQ Composite reaching a historic milestone, driven by a tech rally and supported by in-line CPI data that bolstered expectations for a Federal Reserve interest rate cut. Major commodities had a mixed day on Wednesday: Spot gold edged up 0.9% to $US2,718.73 per ounce, and Brent crude ended the day 1.4% higher to close at $US73.2 a barrel. Contrastingly Iron ore fell 0.7% to $US104.65 per tonne
Yesterday, Wall Street saw a mixed close with the NASDAQ Composite reaching a historic milestone, closing above 20,000 for the first time ever at 20,034.89, up 1.8%. This surge was driven by a tech rally, with significant gains from Google and NVIDIA. The rally was further supported by in-line CPI data showing a 2.7% rise last month and a core increase of 3.3% over the past year. The CPI data reinforced expectations for a Federal Reserve interest rate cut next week, boosting investor confidence with 98% of traders currently pricing in a rate cut. Meanwhile, the Dow Jones Industrial Average fell by 99 points (0.2%), and the S&P 500 index rose by 0.8%. The positive movement in tech stocks was bolstered by Google’s quantum computing breakthrough and strong performances from companies like Rigetti Computing, Broadcom, and Tesla, which hit a record high.
The Australian stock market closed lower on Wednesday, with the ASX 200 declining by 0.47%. The bearish momentum was reflected across all major sectors. Materials, Financials, Info Tech, Healthcare, and Utilities all closed in the red. Major commodities also closed down, with Aluminium, Copper, Zinc and Nickel all falling by 0.12%, 0.41%, 0.16%, and 1.11%, respectively.
Chart of the day
Private equity has consistently invested in the insurance sector, which has established itself as a key subsegment of financial services, particularly commercial lines, and it’s continuing to grow. At the start of the third quarter of 2024, the value of insurance deals surpassed that of 2022 and 2023 and occurred alongside an uptick in investments in financial technology and broader financial services.
Source: Mckinsey
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