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Morning Research Notes - 24.09.24
U.S. stocks rose on Monday, bolstered by steady service PMI data. Broker forecast and upgrades also contributed to gains in rate-sensitive stocks like Tesla, which surged following the Federal Reserve's recent interest rate cut. Commodities experienced mixed performance on Monday. Spot gold saw a modest increase of 0.2%, settling at $2,628.12. In contrast, Brent crude oil declined by 0.8%, bringing its price down to $73.89 per barrel. Similarly, iron ore experienced a notable decrease of 2.1%, with its price falling to $89.75 per tonne.
U.S. stocks closed modestly higher on Monday as investors weighed the implications of the Federal Reserve's recent rate cut. The market saw gains following steady services PMI data and supportive comments from Fed officials, with the Dow Jones rising 61.29 points to 42,124.65, and the S&P 500 up 16.02 points to 5,718.57. Energy stocks led the way with a 1.31% increase, while Tesla surged 4.65% after a report from Citigroup raised its price target for the stock. Despite this positive momentum, the Russell 2000 index fell 0.25%. Investors remain cautious ahead of Friday's key personal consumption expenditures data, the Fed's preferred inflation gauge, which could significantly influence future rate decisions. Overall, advancing issues outnumbered decliners, highlighting a generally optimistic market sentiment despite some sectors, like healthcare, facing declines.
Australian markets began the week on a bearish, with the ASX200 closing 0.69% lower. This decline was reflected across major sectors, as Materials, Financials, and Healthcare experienced price decreases of 0.67%, 0.50%, and 0.65%, respectively. However, Utilities and Information Technology closed positively, gaining 0.26% and 0.81%. Commodities traded flat, with Aluminum, Zinc, and Nickel prices remaining unchanged. Copper was the only commodity to end in the green, closing 0.58% higher.
Chart of the day
As the demand for nuclear energy intensifies the uranium supply chain is nearing a critical tipping point. Current uranium production is grappling with declining output from existing mines, coupled with the slow development of new projects hampered by regulatory and financial obstacles. The disconnect between rising demand and stagnant supply could soon result in a significant shortfall, driving up uranium prices and challenging the growth of nuclear energy as a viable alternative to fossil fuels. The situation underscores the urgent need for investment and innovation in uranium mining to ensure a sustainable energy future.
Source: Livewire
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