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Morning Research Notes - 16.12.24
Rising U.S. Treasury yields weighed on Wall Street, leading to mixed results as the S&P 500 and Dow posted weekly declines, while the Nasdaq continued its upward momentum driven by tech gains. Major commodities had a mixed day yesterday: Spot gold closed down 1.2% to $US2,648.9 per ounce, and Iron Ore ended the day 1.2% lower to close at $US104.8 per tonne. Contrastingly Brent Crude closed 1.3% higher to $US74.4 a barrel.
Wall Street closed near the unchanged mark on Friday, with the S&P 500 and Dow posting weekly declines, while the Nasdaq secured its fourth consecutive week of gains. Rising U.S. Treasury yields, with the 10-year bond hitting a three-week high, contributed to the declines in value and income stocks. Broadcom’s optimistic revenue forecast propelled its shares 24% higher, pushing its market cap past $1 trillion. Chip stocks were mixed, with Marvell Technology rising 10.8% and Nvidia falling 2.2%. The Dow fell 86.06 points to 43,828.06, the S&P 500 lost 0.16 points to 6,051.09, and the Nasdaq gained 23.88 points to 19,926.72.
The Australian stock market closed lower on Friday, with the ASX 200 declining by 0.41%. The bearish momentum was reflected across major sectors. Materials, Info Tech, Healthcare, and Utilities all closed in the red, falling by 1.84%, 0.43%, 0.19% and 0.47%, respectively. In contrast, Financials managed to notch gains, rising by 0.16%. Major commodities closed up, with Aluminium, Copper, and Nickel rising by 1.3%, 0.49%, and 0.72%, respectively. However, Zinc closed down by 0.55%.
Chart of the day
Since mid-2022, Australia’s GDP per capita has declined due to falling household consumption, dwelling investment, and net exports per capita, despite increased business investment and strong government spending. The primary cause is stagnant productivity growth, with GDP per hour worked barely changing over the past decade. Although the overall economy has grown, this growth is driven by strong migration, not by improvements in individual productivity. Consequently, the average person’s share of economic output has been shrinking, affecting their standard of living.
Source: Livewire, Drummond Capital Partners
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