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The S&P 500 and Nasdaq both set a fourth consecutive closing record as fresh inflation data pointed to a further easing in price pressures.
The S&P 500 closed 0.23 per cent higher at a record 5,433.74, while the Nasdaq added 0.34 per cent to also close at a record 17,667.56. The Dow Jones again failed to follow the broader market lead closing in the red down 0.17 per cent.
The key data point on the day was the release of the May’s producer price index which fell 0.2 per cent month on month versus consensus expectations of a 0.1 per cent increase. Rising weekly US jobless claims also provided encouragement for investors signalling a loss of momentum in the jobs market. Both data points were seen as providing further support for the Fed to cut rates later this year.
US 10 year yields fell 5 basis points to now trade below the 4.25 per cent level following the release of the latest inflation data.
In company news, Broadcom shares closed up 12 per cent after the chipmaker delivered better than expected second quarter earnings and also announced its intention to implement a 10 for 1 stock split. Entertainment and Restaurant giant Dave & Buster’s stock fell nearly 11 per cent after delivering weaker than expected first quarter earnings.
Turning to US sectors, the best performer was Technology which closed up 1.36 per cent on the day. The worst performing sector was Communication Services which closed down 0.98 per cent.
In European news, French bonds continued to fall, driving yields over safer German peers to the highest level in seven years, amid concerns Marine Le Pen’s far-right National Rally party will usher in looser fiscal policies if it wins upcoming elections. The spread between French and German 10-year yields widened to close at 70 basis points on Thursday, the most since 2017.
Turning to Chinese news, steel demand in the nation has plateaued due to property market issues, though it remains at a decent level, according to Vale CEO Eduardo Bartolomeo, who expects a shift from real estate to manufacturing demand. China is addressing its housing crisis and market stability, which could help iron ore recovery, while Vale aims to support global steelmakers through "mega hubs" and the use of higher-grade iron ore to reduce emissions.
Futures
The SPI futures are pointing to a 0.1 per cent fall.
Currency
One Australian dollar at 7.30am was buying 66.37 US cents.
Commodities
Gold has lost 1.56 per cent. Silver has dropped 3.97 per cent. Copper has fallen 1.74 per cent. Oil has added 0.15 per cent.
Figures around the globe
European markets closed lower. London’s FTSE fell 0.63 per cent, Frankfurt lost 1.96 per cent, and Paris closed 1.99 per cent lower.
Turning to Asian markets, Tokyo’s Nikkei fell 0.40 per cent, Hong Kong’s Hang Seng added 0.97 per cent while China’s Shanghai Composite closed 0.28 per cent lower.
Yesterday, the Australian share market closed 0.44 per cent higher at 7,749.73.
Dividends payable
Technology One Ltd (ASX:TNE)
Nufarm Ltd (ASX:NUF)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Disclaimer
The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
S&P 500 sets another record on easing inflation data
PUBLISHED
2024-06-14
Content
The S&P 500 and Nasdaq both set a fourth consecutive closing record as fresh inflation data pointed to a further easing in price pressures.
The S&P 500 closed 0.23 per cent higher at a record 5,433.74, while the Nasdaq added 0.34 per cent to also close at a record 17,667.56. The Dow Jones again failed to follow the broader market lead closing in the red down 0.17 per cent.
The key data point on the day was the release of the May’s producer price index which fell 0.2 per cent month on month versus consensus expectations of a 0.1 per cent increase. Rising weekly US jobless claims also provided encouragement for investors signalling a loss of momentum in the jobs market. Both data points were seen as providing further support for the Fed to cut rates later this year.
US 10 year yields fell 5 basis points to now trade below the 4.25 per cent level following the release of the latest inflation data.
In company news, Broadcom shares closed up 12 per cent after the chipmaker delivered better than expected second quarter earnings and also announced its intention to implement a 10 for 1 stock split. Entertainment and Restaurant giant Dave & Buster’s stock fell nearly 11 per cent after delivering weaker than expected first quarter earnings.
Turning to US sectors, the best performer was Technology which closed up 1.36 per cent on the day. The worst performing sector was Communication Services which closed down 0.98 per cent.
In European news, French bonds continued to fall, driving yields over safer German peers to the highest level in seven years, amid concerns Marine Le Pen’s far-right National Rally party will usher in looser fiscal policies if it wins upcoming elections. The spread between French and German 10-year yields widened to close at 70 basis points on Thursday, the most since 2017.
Turning to Chinese news, steel demand in the nation has plateaued due to property market issues, though it remains at a decent level, according to Vale CEO Eduardo Bartolomeo, who expects a shift from real estate to manufacturing demand. China is addressing its housing crisis and market stability, which could help iron ore recovery, while Vale aims to support global steelmakers through "mega hubs" and the use of higher-grade iron ore to reduce emissions.
Futures
The SPI futures are pointing to a 0.1 per cent fall.
Currency
One Australian dollar at 7.30am was buying 66.37 US cents.
Commodities
Gold has lost 1.56 per cent. Silver has dropped 3.97 per cent. Copper has fallen 1.74 per cent. Oil has added 0.15 per cent.
Figures around the globe
European markets closed lower. London’s FTSE fell 0.63 per cent, Frankfurt lost 1.96 per cent, and Paris closed 1.99 per cent lower.
Turning to Asian markets, Tokyo’s Nikkei fell 0.40 per cent, Hong Kong’s Hang Seng added 0.97 per cent while China’s Shanghai Composite closed 0.28 per cent lower.
Yesterday, the Australian share market closed 0.44 per cent higher at 7,749.73.
Dividends payable
Technology One Ltd (ASX:TNE)
Nufarm Ltd (ASX:NUF)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Disclaimer
The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
Author
Name | Peter Milios | Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research. |