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Morning Research Notes - 13.12.24
U.S markets ended Thursday on a down note as major indices fell, driven by rising treasury yields following a hotter-than-expected inflation report. Major commodities had a mixed day yesterday: 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
Wall Street closed lower on Thursday as treasury yields climbed following a hotter-than-expected inflation report. The Dow Jones Industrial Average fell 234 points (0.5%), the S&P 500 slipped 0.5% and the Nasdaq dropped 0.7%. The Producer Price Index (PPI) for November rose 0.4%, exceeding expectations, reinforcing the need for a cautious approach to the Fed's 2025 monetary policy. Adobe’s stock slumped over 14% due to disappointing sales guidance, while ServiceTitan surged more than 42% on its Nasdaq debut. Warner Bros Discovery shares jumped over 15% after announcing plans to split its cable TV business from its streaming and studio units. Broadcom ended 1% lower following news that Apple will replace its components with in-house chips next year.
The Australian stock market closed lower on Thursday, with the ASX 200 declining by 0.28%. The mixed momentum was reflected across major sectors. Materials, Healthcare, and Utilities all closed in the red, falling by 0.3%, 0.51%, and 0.39%, respectively. In contrast, Financials and Info Tech managed to notch gains, rising by 0.08% and 0.40%. Major commodities closed up, with Aluminium, Copper, and Nickel rising by 0.12%, 0.11%, and 0.29%, respectively. However, Zinc closed down by 0.42%.
Chart of the day
The chart projects that Europe’s gas storage levels could fall to 44% by the end of March 2025, following a five-year seasonal pattern. This is a significant drop compared to the 53% storage level in March 2024, highlighting potential supply challenges amid ongoing geopolitical and weather-related uncertainties.
Source: Macro Bond
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