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Our team compiles this daily market report from global sources to highlight key market updates and what they mean for your investment portfolio.
Dow Jones S&P-500 Nasdaq
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The Update: Wall Street's main stock indexes closed higher on Tuesday, boosted by gains in Tesla and megacap growth stocks, but volumes were thin ahead of the July Fourth holiday and the closely watched release of June nonfarm payrolls on Friday. The U.S. job openings and labor turnover survey, or JOLTS, showed job openings increased in May. Tesla surged to its highest level since the start of January after the EV maker reported a smaller-than-expected 5% drop in vehicle deliveries in the second quarter. U.S. Federal Reserve Chairman Jerome Powell told a panel that recent economic data represented "significant progress," though he noted that the Fed needed to see more before changing policy. Source: Reuters
The Impact: Investors initially flinched at stronger jobs figures before taking comfort from Fed Chair Powell's comments that highlighted the Fed's progress on inflation. Bond yields acted similarly, drifting higher in early trade and then moderating to finish lower as Jerome Powell recognised the Bank's progress on inflation. Source: Reuters, CommSec
European stocks ended Tuesday in the red, as market participants assessed the euro zone’s latest inflation data. Headline inflation in the euro area dipped to 2.5% in June, the European Union’s statistics agency announced, in line with the expectation of economists polled by Reuters. However, the closely watched figures for core and services inflation remained stubbornly high, holding at 2.9% and 4.1%, respectively. Source: CNBC
Global oil prices surrendered early gains that saw prices in the region of two-month highs on Tuesday. Sellers were encouraged by forecasts relating to Hurricane Beryl that suggested oil infrastructure along the Gulf Coast is less likely to be hindered by the storm's progress in coming days. In addition to the weather narrative, prices are being supported by the demand picture for the Independence Day holiday driving period with The American Automobile Association (AAA) predicting record holiday travel this year. Source: CommSec
In the latest podcast, James discusses why the Mag 7 stocks are justified in their positions and announces the BCP NRL TippingComp winner. Wellnex Life continues strong revenue growth with 40% gross margins. Insights from Scott Helfstien at the Global X Thematic Conference highlight US market strengths and justified valuations. French elections show National Rally at 34%, causing potential instability.
In the US, Trump’s chances strengthen, while Biden may be replaced. The S&P 500 has the potential for more all-time highs, and copper prices are turning favourable. Stay tuned for more updates.
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