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Morning Research Notes - 13.02.25
US markets ended Wednesday with mixed results as hot inflation data raised concerns over the Fed's future monetary policy, leading to a decline in the S&P 500 and Dow, while the Nasdaq managed a slight gain. Commodities also closed mixed: Gold remained flat at $US2,897.82 an ounce, Brent oil fell by 2.4% to $US75.15 a barrel, and Iron ore increased by 1.8% to $US107.80 a tonne.
Wall Street witnessed mixed results on Wednesday, with the S&P 500 falling 0.3% and the Dow Jones Industrial Average slipping 224 points, or 0.5%, due to hot inflation data raising concerns over future Federal Reserve rate cuts. Meanwhile, the Nasdaq managed a slight gain of 0.03%. The higher-than-expected inflation figures for January, with consumer prices rising 3.0% year-on-year and 0.5% month-on-month, prompted speculation that the Fed might pause rate cuts. Despite this, some stocks like CVS Health and DoorDash saw significant gains following strong earnings reports.
The Australian stock market closed higher on Wednesday, with the ASX 200 rising by 0.6%. Major sectors such as Financials (1.41%) and Utilities (0.15%) closed in the green. In contrast, Materials (-0.42%), Info Tech (-1.05%), and Healthcare (-0.25%) ended the day in the red. The commodities sector had a mixed performance, with Copper, Zinc, and Nickel all closing lower, falling by 0.46%, 0.83%, and 1.46% respectively. Aluminium managed to notch gains of 0.27%.
Chart of the day
Growth in the global luxury sector declined in 2024, a trend that is expected to continue in the coming years. Although China, the largest market for luxury goods, saw a decline in growth in 2024, it is projected to rebound with positive growth through 2027. The US luxury market is expected to see steady growth, while Europe’s may be more moderate. Luxury brands may have to try a strategic reset for long-term success.
Source: McKinsey
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