Good morning,
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
- 0.1% + 0.1% + 0.1%
___________________ __________________ _________________
The Update: The S&P 500 and Nasdaq notched record-high closes on Tuesday, fueled by gains in Nvidia after U.S. Federal Reserve Chair Jerome Powell told lawmakers that more "good" economic data would strengthen the case for rate cuts. AI chipmaker Nvidia climbed 2.5%, offsetting declines in other chip stocks. In testimony before Congress, Powell said that while inflation "remains above" the 2% soft-landing target, it has been improving in recent months and "more good data would strengthen" the case for interest-rate cuts. Source: Reuters
The Impact: Markets have stuck to pricing in 50 basis points of easing for the year, seeing a nearly 72% chance for a 25 bps cut by the Fed's September meeting, according to CME's FedWatch. Those bets were at under 50% a month ago. US government bond yields edged higher on Tuesday. The US 10-year Treasury yield rose 3 points to 4.30% and the US 2-year Treasury yield lifted 1 point to 4.63%. Source: Reuters, CommSec
European stocks closed lower on Tuesday as investors in the region weighed up political uncertainty in France after Sunday’s election result. The pan-European Stoxx 600 index provisionally ended the day down 0.99%. Retail stocks led losses, down 1.65%. The U.K.’s FTSE 100 slipped into the red in afternoon deals, after bucking the wider negative trend through the morning.
It follows last week’s emphatic victory for the left-of-centre Labour Party, seen as broadly supportive of U.K. assets and sectors including house builders in particular. Source: CNBC
Commodity prices generally declined in Northern Hemisphere trade, influenced by a stronger US Dollar. Global oil prices continued their decline from recent six-week highs as traders assessed the demand impact of prolonged higher US interest rates. Source: CommSec
On of our house stocks Impact Minerals (ASX:IPT) is speaking at the Shares in Value conference in Sydney today and whilst they won’t necessarily have any substantially new news of a market moving nature we think their presentation to a large and savvy group of investors should be enough to help the stock along from these undervalued levels. Happy to pick some up this morning. IPT.ASX
Subscribe to our free Morning Market Report email newsletter to stay on top of the markets.