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Morning Research Notes - 10.09.24
Investor interest in Apple’s new AI-enhanced iPhones and anticipation of upcoming inflation data drove a significant rebound in the stock market on Monday. The S&P 500, along with the Dow Jones Industrial Average and Nasdaq Composite, saw gains of 1.2%. Analysts attribute this rally to dip buying and expectations of monetary support. Commodities also experienced a rebound in prices on Monday: Spot gold increased by 0.1% to $US2500.22 per ounce. Brent crude rose by 1% to $US71.75 a barrel, and iron ore went up by 0.7% to $US92.35 a tonne.
The S&P 500 rebounded on Monday, recovering from its largest weekly slump since 2023. This rise was driven by investor interest in Apple’s new AI-enhanced iPhones and anticipation of upcoming inflation data. The Dow Jones Industrial Average and Nasdaq Composite also saw gains of 1.2%. Analysts suggest the rally is due to dip buying and expectations of monetary support. Apple’s stock remained flat despite unveiling new products. Investors are now focused on inflation data set to be released this week, which could influence the Federal Reserve’s decision on interest rate cuts at their upcoming meeting.
The Australian markets began the week on a bearish note, with the ASX 200 falling by 0.32% on Monday. Major indices reflected this trend, experiencing a mixed day. Materials, Info Tech, and Utilities posted gains of 0.03%, 0.40%, and 0.17%, respectively. However, Financials and Healthcare saw losses of 0.58% and 0.68%. Commodities also started the week in the red, with Aluminium, Copper, Zinc, and Nickel recording losses of 2.11%, 0.26%, 1.20%, and 1.11%.
Chart of the day
The uranium market is showing significant potential due to a notable supply-demand imbalance, according to Guy Keller, Portfolio Manager for the Tribeca Nuclear Opportunities Fund. Despite recent price increases, Keller believes the opportunity in nuclear energy is just beginning, with a multi-decade contracting cycle on the horizon. This optimism is fueled by the fact that utilities are starting to respond to the market conditions, which could lead to substantial equity growth over the next 12 months. However, there remains a risk that alternative technologies could decarbonise the electricity grid faster than anticipated, potentially impacting the long-term outlook for uranium.
Source: Livewire
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