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Morning Research Notes - 26.11.24
US markets closed at record highs yesterday, driven by investor optimism following President-elect Donald Trump’s nomination of Scott Bessent as Treasury Secretary, alleviating market uncertainties and boosting broader market sentiment. Major commodities had a mixed day: Spot gold rose 0.1% to $US2,711.0 per ounce, while iron ore increased 2% to $US102.55 per tonne. However, Brent crude fell 2.8% to $US73.05 a barrel.
On Monday, Wall Street closed with record highs as the Dow Jones Industrial Average surged 440 points (1%) to 44,736.57, driven by investor optimism following President-elect Donald Trump’s nomination of Scott Bessent as Treasury Secretary. The S&P 500 and NASDAQ Composite also saw gains of 0.30%. Bessent’s nomination alleviated market uncertainties, leading to a retreat in the dollar and a sharp fall in Treasury yields. Broader market sentiment was further bolstered by reports of a potential ceasefire between Israel and Hezbollah.
On Monday, the Australian stock market closed higher, with the ASX 200 rising by 0.28%. This mixed momentum was reflected across major sectors, with Materials, Financials, and Utilities seeing declines of 0.24%, 0.2%, and 1.06%, respectively. In contrast, the Info Tech and Health Care sectors ended the day in the green, rising by 0.94% and 1.34%. Major commodities had a bearish session, with Aluminium, Copper, Zinc, and Nickel falling by 0.08%, 1.3%, 0.74%, and 0.6%, respectively.
Chart of the day
The development of AI is driving the need for advanced processing and cooling technologies in data centres, leading to a global increase in data centre development, particularly hyperscale data centres used by companies like Amazon, Meta, and Google. These centres are designed to handle the specific demands of AI, which now accounts for about 20% of global data centre capacity. The global hyperscale data centre market is projected to reach $935.3 billion by 2032. AI technology significantly increases power usage, with modern processor racks consuming up to 132 kW per rack. The International Energy Agency (IEA) forecasts that global electricity consumption by data centres, cryptocurrencies, and AI could reach between 620-1,050 TWh by 2026, a substantial increase from 460 TWh in 2022.
Source: Livewire
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