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Highlights:
- ASX Futures Up 0.2%
The Australian market is poised for a positive start, with ASX futures rising by 19 points (0.2%) to 8,217 following a quiet US trading session. Wall Street saw minimal movement, with the Dow Jones up slightly, while the S&P 500 and Nasdaq experienced marginal losses.- US Stock Markets Reflect Modest Gains in 2024
The Dow, S&P 500, and Nasdaq have made substantial gains in 2024, increasing by 14%, 26%, and 33%, respectively, as markets anticipated a potential easing of interest rates. Treasury yields rose, which impacted some major tech stocks, though Apple continued its ascent towards a US$4 trillion market cap.- Commodities and Currencies Show Mixed Movements
Oil prices fell after initial gains, influenced by mixed signals from China’s economic stimulus and a US inventory report. Gold, however, rose by 0.8%, buoyed by safe-haven demand. The Aussie dollar weakened slightly, while the Euro and Yen saw modest gains.
The Australian market is expected to open higher after a two-day break, with futures up by 19 points, or 0.2%, to 8,217. This follows a relatively flat session in the US on Tuesday, with markets experiencing light trading due to the post-Christmas lull. Despite minimal changes in the major US indexes, market sentiment remains upbeat after a solid performance throughout the year.
The Dow Jones saw a minor increase of 0.07%, while the S&P 500 dipped 0.04% and the Nasdaq lost 0.05%. These small fluctuations followed a three-day winning streak heading into the Christmas break, bringing the year-to-date performance of the key US indexes to impressive levels. The Dow, S&P 500, and Nasdaq have all posted strong gains in 2024 — up by 14%, 26%, and 33%, respectively. Each of these indexes has set multiple record highs this year, driven by market optimism regarding lower interest rates and a strong economic recovery.
A key feature of the session was the rise in US Treasury yields, with the 10-year benchmark Treasury note climbing to its highest level since May, reaching 4.64%. This increase in yields had a notable impact on major technology stocks. Tesla, Amazon, and Meta Platforms all experienced losses, while Apple stood out with a gain as it nears the milestone of a US$4 trillion market capitalization. This marks another achievement in Apple's stellar year, with the company continuing to lead the charge among global tech stocks.
In currency markets, the Australian dollar weakened slightly, trading down 0.3% to around US62.20 cents. Meanwhile, the Japanese yen gained 0.3%, trading at 157.87 yen per US dollar, and the Euro rose by 0.14%, trading at US$1.04.
Commodities saw mixed movement during the session. Oil prices fell, giving up earlier gains spurred by hopes for stimulus measures from China and a report showing lower US inventories. Brent crude ended 0.6% lower at US$73.12 per barrel. Gold, on the other hand, was supported by safe-haven demand, rising by 0.8% to US$2,634.19 per ounce. Investors continue to keep a close watch on the US economy’s health and the potential impact of political developments in the US.
As the year nears its end, global markets will remain attentive to economic indicators and central bank policies as they look to navigate the final stretch of 2024.
