Investors stay on the sidelines ahead of key inflation data

Investors remained on the sidelines ahead of the key March CPI data due out Wednesday US time (tonight local time).

The Dow tipped into negative territory closing down 0.02 per cent. The S&P 500 closed up 0.14 per cent and the Nasdaq was the best performing index closing up 0.32 per cent.

In company news, Intel unveiled its new AI chip called Gaudi 3. Intel says the new Gaudi 3 chip is over twice as power-efficient and can run AI models one-and-a-half times faster than Nvidia’s. As a result, Chipmaker Nvidia dropped 2 per cent. Meta and Netflix closed down 0.5 per cent and 1.6 per cent respectively.

The key March CPI numbers are due for release on Wednesday. Economists polled by Dow Jones show consensus expectations of a 0.3 per cent rise in March on a month-over-month basis.

In commodity-related news, the soaring prices of gold and copper were the big stories. Gold hit an all time high of $2,384.50 per ounce on Tuesday on Comex in New York, but has eased slightly since. The price of copper traded near a 15-month high as Citigroup said there’s potential for “explosive price upside” in the metal in the next three years thanks to supply disruptions and rising demand.

Moving back toward the price of gold, Bank of America have made a big claim overnight stating that Gold prices are projected to jump to $3,000 per ounce by 2025. This is due to strong demand from central banks and the anticipation of investors returning to the market once the Federal Reserve begins to slash interest rates.

Shifting to US sectors, all closed higher overnight except for Industrials and Financials. Real Estate was the best performer.

In local news, the focus will be on the New Zealand rate decision due at midday and on building activity due. The RBNZ is expected to hold interest rates steady.

Futures

The SPI futures are pointing to a 0.3 per cent rise.

Currency

One Australian dollar at 7.20am was buying 66.28 US cents.

Commodities

Gold added 0.48 per cent. Silver gained 0.64 per cent. Copper rose 0.22 per cent. Oil fell 1.39 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 0.11 per cent, Frankfurt lost 1.32 per cent, and Paris closed 0.86 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei gained 1.08 per cent, Hong Kong’s Hang Seng added 0.57 per cent and China’s Shanghai Composite closed 0.05 per cent higher.

Yesterday, the Australian share market closed 0.45 per cent higher at 7,824.24.

Ex-dividends
Cardno Limited (ASX:CDD) is paying 27.6 cents unfranked

Dividends payable
Genesis Energy Ltd (ASX:GNE)
IPD Group Ltd (ASX:IPG)
New Zealand Oil & Gas Ltd (ASX:NZO)
News Corp (ASX:NWS)
NIB Holdings Ltd (ASX:NHF)
PSC Insurance Group Ltd (ASX:PSI)
Reece Ltd (ASX:REH)
Silk Logistics Holdings Ltd (ASX:SLH)
Southern Cross Electrical Engineering Ltd (ASX:SXE)

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.
Copyright 2024 – Finance News Network