EQUITIES
| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 38,883.67 | -9.13 | -0.02% |
| S&P 500 | 5,209.91 | 7.52 | 0.14% |
| Nasdaq | 16,306.64 | 52.68 | 0.32% |
| VIX | 14.98 | -0.21 | -1.38% |
| Gold | $2,370.70 | $8.30 | 0.35% |
| Oil | $85.30 | $0.07 | 0.08% |
US MARKET
US stocks edged slightly higher on Tuesday, with real estate stocks leading the gains.
Traders are closely monitoring consumer prices for signs of persistent inflation. Stronger-than-expected inflation could delay anticipated interest rate cuts by the Federal Reserve.
Jason Pride, chief of investment strategy at Glenmede, noted that higher CPI could sway the Fed towards maintaining higher rates.
Economists anticipate Wednesday’s inflation report to reveal a 3.4% rise in consumer prices for March, up from February’s 3.2%. Previous reports indicated hotter-than-expected inflation.
The S&P 500 initially rose but later fluctuated before closing slightly higher, gaining 0.1%. Nine of its 11 sectors saw gains, while financials and industrials declined.
The Dow Jones fell slightly, while the Nasdaq Composite gained 0.3%.
Despite strong job growth in March, concerns persist about the economy’s pace and its impact on inflation.
Major indexes have had a shaky start to the second quarter, with the S&P 500 up 9.2% and the Dow industrials up 3.2% for the year.
Some investors remain optimistic about the economy, acknowledging the Fed’s potential rate cuts to mitigate market risks.
In the bond market, the yield on the 10-year Treasury note dipped to 4.365%, its highest since November.
Gold prices reached a record close for the third consecutive session, with shares of gold miners Newmont and Barrick Gold rising.
Norfolk Southern’s shares climbed 1.3% following a $600 million settlement related to a train derailment in Ohio.
LOCAL MARKET
The local stock market saw a second consecutive day of gains, driven by the mining sector.
The S&P/ASX200 index rose by 0.45%, gaining 35.1 points to reach 7,824.2. The broader All Ordinaries index also increased by 0.45%, adding 36.3 points to reach 8,081.2.
The mining sector performed strongly, rising by 1.5%, led by gains in iron ore companies. This shift follows a recent rotation out of financials and into materials, which saw a significant decline in the last quarter due to plummeting iron ore prices.
Global industrial activity, as measured by the purchasing manager’s index, has exceeded expectations, boosting prices of key commodities like copper, iron ore, gold, and crude oil. Meanwhile, higher bond yields may dampen the performance of financials.
Notable performers in the mining sector include Rio Tinto, which rose by 3.0%, BHP, up by 2.0%, and Fortescue, climbing by 1.6%.
Liontown Resources, a lithium miner, was the top gainer in the ASX200, surging by 8.8%. Other notable gainers include Lynas, a rare earth miner, and Evolution, a goldminer.
In the financial sector, major retail banks experienced modest gains, with Westpac, CBA, ANZ, and NAB all finishing higher, though not as strongly as the mining sector.
Ansell saw a significant increase of 6.5% after announcing its acquisition of Kimberly-Clark’s personal protective equipment business for $640 million.
MotorCycle Holdings faced a 1.3% drop after disclosing a cyber attack that may have compromised customer information.
The Australian dollar reached a five-day high against the US dollar, trading at 66.02 US cents.
In other markets, the NZX 50 experienced a decrease of 0.48%, closing at 11,916.78 points. Conversely, the Nikkei index gained 1.07%, reaching 39,773.13 points at the time of writing.