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Morning Research Notes - 25.09.24
U.S. stocks closed higher on Tuesday, driven by gains in the Materials, Technology and Consumer Services sectors, with the S&P 500 closing at its 41st all-time high of the year. Commodities performed positively on Tuesday. Spot gold saw an increase of 0.9%, settling at US$2,651.66 per ounce. Brent crude (Oil) rose by 1.5%, bringing its price up to US$75.01 per barrel. Iron ore witnessed substantial gains, increasing by 6.4% to US$95.15 per tonne, benefiting from a raft of monetary stimulus announced by the Chinese Central Bank.
Wall Street saw incremental gains overnight, with Commodities and to a lesser extent the Technology and Consumer Services sectors driving upward momentum. Notable movers included Caterpillar Inc., which saw a large increase, and Visa Inc. which experienced a decline. At the close of trading, the S&P 500 gained 0.3%, the Nasdaq 0.6% and the Dow Jones 0.2%. The commodity sector saw notable gains, with the loosening of the People's Bank of China (PBoC) monetary stance, the primary catalyst for price gains.
The Australian markets saw a rebound on Tuesday, with the ASX200 closing 0.08% higher. This mixed performance was evident across major sectors: Financials, Info Tech, and Healthcare experienced price decreases of 1.14%, 0.53%, and 0.37%, respectively. However, Materials and Utilities closed positively, gaining 2.15% and 0.03%. Commodities traded flat, with Zinc and Nickel prices remaining unchanged, while Aluminium and Copper ended the day in the green, closing 3.36% and 3.06% higher.
Chart of the day
The medical technology (MedTech) sector has demonstrated remarkable resilience during economic downturns, potentially making the sector a valuable asset for investors seeking capital growth and defence against the business cycle. Historically, medtech companies have outperformed the broader market during significant bear markets, including the dotcom crash of 2008, the Global Financial Crisis (GFC) of 2008-09, and the COVID-19 pandemic of 2020. The historical outperformance is largely due to the unwavering demand for medical products and services, which remains strong even during economic contractions.
Source: Livewire
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