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Morning Research Notes - 06.03.25
US markets closed higher yesterday, driven by a one-month tariff delay for American automakers, despite economic concerns highlighted by private payroll data. Major commodities experienced mixed movements on Wednesday: Gold rose by 0.1% to $US2,920.96 an ounce. Contrastingly, Brent oil fell by 2.3% to $US69.38 a barrel, and Iron ore dropped by 1.1% to close at $US99.70 a tonne.
Wall Street closed higher on Wednesday, with the S&P 500 and Dow Jones Industrial Average rising by 1.1%, as the Nasdaq gained 1.5%. This positive movement came after the White House announced a one-month tariff delay for U.S. automakers complying with the USMCA, easing trade war concerns. Auto stocks surged, with the market responding positively despite recent economic worries. Notably, private payrolls increased by only 77,000 jobs in February, the smallest rise since July 2024, following an upwardly revised gain of 186,000 jobs in January.
The Australian stock market closed lower on Wednesday, with the ASX 200 falling by 0.70%. The major sector Utilities (0.11%) closed in the green. In contrast, Info Tech (-0.10%), Financials (-0.95%), Materials (-0.03%), and Healthcare (-0.12%) all closed down. The commodities sector had a bullish day, with Aluminium, Copper, Zinc, and Nickel all closing in the green.
Chart of the day
The U.S. stock market is facing pressure due to tariff uncertainty, inflation concerns, geopolitical tensions, and a lack of catalysts for the tech sector. Nvidia’s previous bullish sentiment has made it difficult to attract new buyers during the dip. The S&P 500 ETF has broken below its uptrend line from November 2023, with momentum nearing oversold territory. Traders are focusing on the prior breakout area and the 200-day moving average around 565-560 as key support levels.
Source: TradingView, ChartOfTheDay
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