Wall Street Hovers Near Record Highs

  • Stock Market Analysis

US stocks traded near record highs on Monday, ahead of the US Consumer Price Index ( CPI ) announcement later today. The S&P 500 and the Nasdaq were marginally lower, while the Dow Jones added more than 100 points. “The US CPI is expected to show price pressures diminished last month, further supporting a cut in interest rates by the Fed this year. Remarks from several Fed officials this week will also be scrutinized for the timing of the first-rate reduction,” Trading Economics reported.

European stocks nudged higher, building on their strong performance from last week, as investors monitored incoming company earnings and interest rate expectations. The pan-European STOXX 600 closed 0.50% up, with major indices and almost all sectors trading in positive territory. “After a strong end to January, the regional STOXX index has recorded a muted February so far. That’s despite big movements in individual stocks, as company results roll in. This week will see reporting from European businesses, including Heineken (AS: HEIN ), Airbus (EPA: AIR ), Renault (EPA: RENA ), and NatWest (LON: NWG ),” Trading Economics added.

Chinese markets will remain closed for the week, together with several major Asia-Pacific financial markets in observance of the Lunar New Year.

The FTSE/JSE All Share Index (ALSI) reversed course to close slightly up on Monday as investors anticipated the release of January’s US inflation data due this afternoon. The CPI for December was downwardly revised to a 0.20% increase on Friday, helping market sentiment ahead of the January report. The local bourse gained 0.41% to close at 73 722 points, while the rand strengthened by 0.52% to trade at R18.94/$ at 18h00.

Brent crude lost 0.33% to trade at $81.92 a barrel on Monday as geopolitical tensions persist. Trading Economics noted that: “Diplomatic talks in Beirut suggested potential progress in resolving issues in Gaza, but Yemen's Houthis reported another ship attack in the Red Sea, highlighting persistent risks. Simultaneously, Israel conducted airstrikes in Gaza's Rafah following last week's rejected ceasefire proposal. Nonetheless, abundant global supply and uncertain demand prospects, particularly in China, have curtailed further oil price increases.” Gold lost 0.52% to $2 013.64/oz, while platinum gained 1.42% to $887.03/oz.

PSG Wealth Daily Investment Update, 13 February 2024

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