CommSec’s Post

Sensex Today | Stock Market LIVE Updates: Oil prices rise on concerns of lower supply, signs of U.S. economic growth Oil prices rose in early Asian trade on Thursday on concerns of lower supply as major producers are keeping output cuts in place and on signs of stronger economic growth in the U.S., the world's biggest oil consumer.

It was expected to happen, but predicting the timeline is challenging. USA's inflation dropped to 3.2% from 3.7% last month and from 9.2% in June of the previous year. The market is welcoming this news and expecting no more interest rate rise. Market forecasters were providing positive news since end of October. In the last 13 days: S&P 500 is up by more than 9%. DOW is up by more than 7.5%. NASDAQ is up by more than 11.5%. Bond yield down: 10 years yield dropped from 5.% 3 weeks ago to 4.5%. Drop in yield pushes the bond price higher. The Australian market is lagging behind due to higher inflation, but it will ultimately slow down. In the last 13 days, the Australian market has increased by 0.5%. The Australian banks and mining sectors, which cover the major portion of the index, are weak. The positive news from the USA will likely bring a positive market sentiment to Australia.

Last week the World Gold Council published its figures for the fourth quarter of 2023. #Gold demand for technology, electronics and other industrial use cases continued to improve in nominal and YoY terms - pointing to an economic rebound. “Technology demand proved another surprising element in 2023, churning out stellar growth in Q4, albeit from a low base. Guidance from major chip manufacturers suggests 2024 will be a bumper year for semiconductors, with the AI sector a major contributor. As such, technology demand is likely to be somewhat insulated from high prices and a slowing global economy.“ the report stated. Read more in this week’s newsletter. #markets #finance #assetmanagement

🌐 Global commodity markets are facing a "super squeeze," driven by supply constraints more than by demand growth. This scenario poses challenges and opportunities as geopolitical risks and climate change play pivotal roles in shaping commodity prices. 📉 Higher prices resulting from a super squeeze may not necessarily signal positive global growth, highlighting the need for a strategic approach to address supply chain disruptions and climate-related impacts. 💡 The lack of investments in critical transition metals like copper and nickel presents a significant hurdle in meeting the rising demand for energy transition materials. Without increased investments, the supply of these essential metals is at risk of falling short, potentially impacting the transition to a net-zero carbon future. 🔍 Current market dynamics indicate a potential prolonged squeeze on commodities, especially in the energy transition sector. More investment in mining projects and exploring new capacities is essential to ensure a stable and sufficient supply of key metals required for the global energy transition. 🔄 The volatile nature of commodities, coupled with geopolitical uncertainties, climate risks, and investment challenges, underlines the complexity of the current market environment. Advancements in technology could hold the key to unlocking new extraction methods, offering a potential solution to the current supply constraints. 📈 While metals, particularly those used in clean energy production, are expected to see the most significant impact, the broader commodity landscape remains uncertain. The interplay of economic downturns, global demand trends, and supply disruptions will continue to shape commodity prices in the foreseeable future. 🌍 Despite ongoing challenges, some analysts suggest that commodity markets remain adequately supplied, with the focus shifting towards balancing demand and supply dynamics amid a sluggish global economy. The hopes for a rebound in Asian demand could hold the key to a potential breakout year for commodities in the near future. https://lnkd.in/dBh7-59V

Despite the collapse in the Chinese economy, copper has shown remarkable resilience, a scenario unthinkable for most investors a few years ago. This resilience can be attributed to three main factors: ▪️ Rising demand from G-7 economies aiming to rebuild their manufacturing capabilities, offsetting the effects of the decline in the Chinese market ▪️ The early stages of a Green Revolution emphasizing the crucial role of metals like copper ▪️ The onset of an inflationary era prompting an increase in buyers for natural resources and related assets. This trend echoes the last 1-2 years when gold stood firm while the fixed income market fell apart — a common occurrence during inflationary periods. Source : https://lnkd.in/dqP5BB2q

Today's Market Beat offers economic insights on oil, gold and stocks making headlines. Learn more about what's happening in the markets. #stockmarket

Today's Market Beat offers economic insights on oil, gold and stocks making headlines. Learn more about what's happening in the markets. #stockmarket

Today's Market Beat offers economic insights on oil, gold and stocks making headlines. Learn more about what's happening in the markets. #stockmarket

Today's Market Beat offers economic insights on oil, gold and stocks making headlines. Learn more about what's happening in the markets. #stockmarket

Today's Market Beat offers economic insights on oil, gold and stocks making headlines. Learn more about what's happening in the markets. #stockmarket