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Morning Research Notes - 05.03.25
US markets experienced significant losses yesterday as escalating trade tensions, driven by President Trump’s tariff threats, weighed heavily on the market, leading to declines in major indices and mixed performances in the tech sector. Major commodities experienced mixed movements on Monday: Gold rose by 0.0% to $US2,892.03 an ounce. Contrastingly, Brent oil fell by 1.9% to $US71.43 a barrel, and iron ore dropped by 2.2% to close at $US100.15 a tonne.
Wall Street closed sharply lower yesterday, with the S&P 500 falling by 1.2%, the Dow Jones Industrial Average dropping 669 points (1.6%), and the NASDAQ Composite slipping 0.4%. Nvidia initially led a tech rebound but ended up giving back some gains, closing 1.7% higher. President Trump escalated trade tensions by threatening more tariffs, prompting retaliatory measures from Canada, Mexico, and China. Citi strategists warned that current S&P 500 earnings estimates might not fully account for the risks posed by these tariffs, suggesting potential downward revisions.
The Australian stock market closed lower yesterday, with the ASX 200 index declining by 0.58%. Major sectors, including Materials, Financials, Information Technology, and Utilities, all ended the day in the red. In contrast, the Health Care sector saw a modest gain, rising by 0.32%. The commodities sector experienced mixed results: Aluminium and Copper fell by 0.51% and 0.03%, respectively, while Zinc and Nickel rose by 0.91% and 1.39%.
Chart of the day
Employees are more ready to adopt AI in the workplace than business leaders realise. C-suite leaders estimate that only 4 percent of employees use gen AI for at least 30 percent of their daily work, according to McKinsey surveys. However, this estimate falls short; 13 percent of employees report that they use gen AI at that level.
Source: McKinsey
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