| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 42454.12 | -57.88 | -0.14% |
| S&P 500 | 5780.05 | -11.99 | -0.21% |
| Nasdaq | 18282.05 | -9.57 | -0.05% |
| VIX | 20.93 | 0.07 | 0.34% |
| Gold | 2647.30 | 21.30 | 0.81% |
| Oil | 75.59 | 2.35 | 3.21% |
US MARKET
US stocks edged lower on Thursday as investors absorbed slightly higher-than-expected inflation data, while weekly jobless claims surged by 33,000 to 258,000, marking their highest level in over a year. This latest data has strengthened expectations of a 25 basis point rate cut by the Federal Reserve next month.
The consumer price index for September showed a 2.4% year-over-year increase, just above the forecast of 2.3%. The core CPI, which excludes volatile food and energy prices, rose by 3.3% year-over-year, also higher than expected and 0.3% above August’s figure.
Although inflation is cooling slower than anticipated, analysts believe this won’t completely deter the Fed from continuing its easing cycle, especially following last week’s strong jobs report, which revealed 254,000 jobs added in the previous month.
Despite some hopes for another 50-basis point cut being dashed, the modest uptick in CPI is not seen as enough to halt the Fed’s easing momentum. JPMorgan analysts highlighted that one more set of inflation data remains before the Fed’s next meeting, and any slight upside could be viewed as typical volatility.
LOCAL MARKET
Australian shares are set to open lower, following a weak performance on Wall Street, where all three major indices declined. September inflation in the US came in slightly higher than expected, while weekly jobless claims hit a one-year high, dampening sentiment. ASX futures were down 3 points, or 0.04 per cent, at 7am AEDT.
Despite the US Federal Reserve’s recent rate cut, ongoing economic data has raised doubts about further reductions.
In commodities, Goldman Sachs noted that while rising steel margins in China have boosted iron ore demand, prices remain vulnerable unless end demand improves. Further stimulus from China could offer short-term support for both iron ore and steel prices.
Meanwhile, Guzman y Gomez (GYG) remains confident it will meet its growth projections, despite mixed market views on its expansion plans.