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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: The Nasdaq scored a record closing high on Tuesday and the S&P 500 and the Dow also advanced as Federal Reserve Chair Jerome Powell reassured investors. Powell described the PPI report as more mixed than hot given that prior-period data was revised lower. The PPI for final demand rose 0.5% last month after falling by a downwardly revised 0.1% in March.
Economists polled by Reuters had forecast the PPI gaining 0.3%. U.S. President Joe Biden unveiled a bundle of steep tariff increases on an array of Chinese imports including electric vehicles, computer chips and medical products. Source: Reuters
The Impact: Investors cautiously awaited Wednesday's Consumer Price Index figures to assess whether upside surprises in the first quarter extended into April. Sticky inflation and persistent labour market strength have prompted financial markets and most economists to push bets for an initial Fed rate cut back to September from March previously. US government bond yields fell on Tuesday, The US 10-year Treasury yield fell by 4 points to 4.44%. Source: Reuters, CommSec
The Albanese government has increased net spending by more than $24 billion over the next four years, including $300 in power bill discounts for every household and $325 for small businesses, in a move which Treasury says will cut inflation by 0.5 percentage points next financial year. Source: AFR
European stocks closed slightly higher on Tuesday as global investors reacted to the latest U.S. inflation data. The pan-European Stoxx 600 index ended 0.2% higher, with most sectors in positive territory. Auto stocks led the gains, up more than 1.3% for the session. Source: CNBC
It will be dedicated to overseeing initiatives such as the $1.7 billion Future Made in Australia Innovation Fund, $1.5 billion allocated to Solar Sunshot and Battery Breakthrough programs and $1.9 billion aimed at revitalising Arena's core mission, which focuses on fostering, commercialising, and implementing new technologies deemed vital for achieving the nation's clean energy goals. Source: AFR
BHP came back to the table with an upsized takeover bid for LSE-listed Anglo American (LSE: AAL) taking their all-scrip offer from £25 to £27.53/share. The offer was strictly rebuked by the Anglo board before releasing their “Crown Jewel Defense” involving the demerger of their De Beers diamond business, a sale of its South African platinum unit, and the sale of coking coal mines in Australia. While not a true crown jewel defence in the sense that BHP is after Anglo’s copper and iron ore assets, the move is likely to see BHP walk away from the table.
Budget Week reflections: While I'm still waiting for my birthday present, the boost in critical minerals mapping caught my eye - $566m dedicated to locating these essential resources. Amidst market insights and global concerns, let's not lose sight of our humanity. Stay informed, stay aware.
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