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Morning Research Notes - 29.10.24
On Tuesday, the Nasdaq reached a record high, driven by gains in tech stocks ahead of Alphabet’s earnings, while the Dow Jones fell and the S&P 500 saw modest gains amidst mixed economic data and corporate earnings reports. Major commodities had a mixed day: Spot gold rose 1.0% to $US2,770.00 an ounce and Iron ore increased 0.7% to $US104.15 a tonne. In contrast, Brent crude fell 0.3% to $US71.22 a barrel.
Yesterday on Wall Street, the Nasdaq closed at a record high of 18,717.58, gaining 0.7%, while the S&P 500 rose 0.2% and the Dow Jones fell by 154 points (0.4%). Tech stocks led the market, with significant gains ahead of Alphabet’s earnings report. Ford’s stock dropped 8% after lowering its full-year profit forecast, while VF Corporation surged 27% on reporting a profit. Labour market data showed a decline in job openings but an increase in hiring, and consumer confidence reached its highest level since 2021.
The Australian stock market closed Tuesday with gains, as the ASX 200 rose by 0.34%. This positive trend was reflected across major indices, with the Materials, Info Tech, and Financials sectors recording increases of 0.6%, 0.54%, and 0.73%, respectively. In contrast, Utilities and Health Care closed lower by 0.32% and 0.41%, respectively. Major commodities ended the day in the green, with Aluminium, Copper, and Zinc rising by 0.37%, 0.18%, and 0.88%, respectively. Contrastingly, Nickel prices fell 0.69%.
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Chart of the day
Since central banks began increasing interest rates, luxury and sub-luxury retail offerings have thrived, while middle market and discount retailers have struggled. This reflects the dual impact of restrictive monetary policy: higher interest income benefits those with net cash, while higher interest expenses burden borrowers. Consequently, the economy doesn’t slow as expected, creating clear winners and losers. The lesson? Restrictive policy isn’t restrictive for all, and easy policy may not be easy for many.
Source: Livewire
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