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Morning Research Notes - 03.03.25
US markets surged on Friday as positive inflation data outweighed geopolitical tensions on investor sentiment, following a contentious meeting between President Donald Trump and Ukraine President Volodymyr Zelenskyy. Major commodities experienced mixed movements on Friday: Gold fell by 1.4% to $US2,875.08 an ounce, Brent oil rose by 2% to $US73.95 a barrel, and Iron ore dropped by 0.6% to close at $US105.30 a tonne.
Wall Street closed sharply higher on Friday, with the S&P 500 rising 1.5%, the Nasdaq Composite adding 1.6%, and the Dow Jones Industrial Average climbing 1.4% (600 points). The gains followed a brief stumble after a tense meeting between President Donald Trump and Ukraine President Volodymyr Zelenskyy, which raised concerns about geopolitical risks. Additionally, U.S. inflation data met expectations, showing a slight annualised slowdown, while consumer spending unexpectedly contracted, presenting a mixed economic outlook for the Federal Reserve as it considers future interest rate decisions.
The Australian stock market closed higher on Friday, with the ASX 200 falling by 0.12%. Major sectors such as Financials (0.32%) and Healthcare (0.49%) closed in the green. In contrast, Info Tech (-0.61%), Materials (-3.0%), and Utilities (-2.47%) all closed down. The commodities sector had a bearish day, with Aluminium, Copper, Zinc, and Nickel all closing in the red.
Chart of the day
Private equity (PE) deal activity in pharmaceutical supply chain services has showed steady growth over the past decade, but this trend has shifted post-pandemic. Since 2021, PE buyouts and investments in pharma services have declined, with deal activity falling by 15 percent per annum between 2021 and 2023. However, the global pharma supply chain services industry has a profit pool of about US$77 billion, composed of high-growth subsegments such as raw materials and consumables that may represent opportunities for PE firms moving forward.
Source: McKinsey
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