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Morning Research Notes - 17.09.24
Ahead of the upcoming Federal Reserve meeting, investors have started the week on edge, eagerly awaiting a 25 or 50-basis point cut. Yesterday, commodities saw mixed movements. Spot gold edged up by 0.1%, reaching $US2581.15 per ounce. Brent crude experienced a significant rise of 1.6%, closing at $US72.72 per barrel. In contrast, iron ore prices fell by 1.1%, settling at $US91.75 per tonne.
U.S. stocks experienced mixed performance on Monday as investors "treaded water" ahead of Thursday's rate decision. The Dow Jones Industrial Average rose by 0.55%, reaching a new record high, while the S&P 500 saw a slight increase of 0.1%. In contrast, the Nasdaq Composite fell by 0.51%. Reports of a second attempted assassination of Donald Trump also influenced market sentiment. The Fed’s upcoming meeting is anticipated to set the tone for future monetary policy, with traders divided between a 25 or 50 basis point cut, amidst concerns over a cooling economy and persistent inflation.
Australian markets began the week on a positive note, with the ASX 200 closing 0.27% higher on Monday. However, this upward trend was not consistent across all major indices. Financials and Information Technology were the only sectors in the green, gaining 0.95% and 0.39% respectively. In contrast, Materials, Health Care, and Utilities saw declines of 0.28%, 1.06%, and 1.03%. Commodities rebounded on Monday, with Aluminium, Copper, Zinc, and Nickel recording gains of 4.16%, 1.49%, 3.50%, and 1.82%.
Chart of the day
Anglo American, a major mining company, is planning to sell its Australian coal portfolio, providing insights into the future of the steel industry and one of its key raw materials, metallurgical coal. Met coal, alongside iron ore, is an essential component in the manufacture of steel. Recently, met coal prices have been volatile due to factors such as geopolitical tensions and fluctuating steel demand, especially in China.
Anglo-American's portfolio includes several coal mines, with recent safety issues at its Grosvenor mine complicating the sale. Major companies like BHP and Glencore are also likely to be interested in the purchase.
Source: Livewire, Datt Capital
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