| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 38571.03 | -115.29 | -0.30% |
| S&P 500 | 5283.4 | 5.89 | 0.11% |
| Nasdaq | 16828.67 | 93.65 | 0.56% |
| VIX | 13.11 | 0.19 | 1.47% |
| Gold | 2371.2 | 1.8 | 0.08% |
| Oil | 74.05 | -0.15 | -0.20% |
US MARKET
US stocks kicked off the week with slight gains on Monday as investors brace for a busy week of economic data releases.
This week, investors will scrutinise manufacturing and services data from the ISM and PMI index releases scheduled for Monday and Wednesday. Additionally, the labour market will be in the spotlight with job openings data expected on Tuesday, initial jobless claims on Thursday, and the May jobs report on Friday.
The median forecast for the number of jobs added to the economy in May is 178,000, closely aligning with the April figures. Economists suggest that a “sweet spot” range of 125,000 to 175,000 jobs would be ideal. This range could potentially pave the way for interest rate cuts from the Federal Reserve without causing investor concerns about a potential recession.
Bank of America noted that “bad news has been good news for equities over the past two months,” citing a -78% correlation between the S&P 500 and USD. However, they cautioned that if economic growth deteriorates significantly, bad news could indeed become genuinely negative for the market.
As the week progresses, market participants will closely monitor these data points to gauge the economic outlook and potential policy responses from the Federal Reserve.
Australian shares are expected to decline today, tracking a mixed Wall Street performance and disappointing US manufacturing data. ASX futures are down 12 points, or 0.2%, to 7469 as of 7:30am AEDT. Local bond yields are also set to drop.
Iron ore prices in Singapore fell 4.2% to $US110.65 per tonne due to increased shipments and weak demand in China. Oil prices dropped below $US79 a barrel after OPEC announced plans to increase output, contrary to analysts’ expectations.
Locally, Q1 2024 balance of payments and business indicators will be released at 11:30 am AEDT, with GDP data due on Wednesday.
In corporate news, Newmont shares will trade ex-dividend. Life360, the creator of a popular family-tracking app, announced an initial public offering in the United States to finance its business expansion. AFT Pharmaceuticals will distribute its non-opioid pain relief medication Combogesic through Alexso in the US as part of its strategy to enter the world’s largest pharma market.
ASX has issued a warning that its recent push for diversity reporting on race, sexuality, and other attributes among company directors may be misguided. The proposed updates to diversity reporting rules have sparked controversy, as directors would be asked to disclose their sexuality, Indigenous heritage, and disabilities.