Pre-Market Report – Monday 29 July: SPI up 60 as US PCE comes in as Expected. Fed and BoJ Week

Market Updates

US equities closed out the week on a positive note recouping some ground lost earlier in the week, boosted by inflation data raising optimism for a September rate cut. The Dow rallied 654 points (+1.64%), buoyed by gains in 3M up 22.9% its largest daily gain in decades after it raised the lower end of its profit forecast. The S&P 500 closed 1.11% higher, and the NASDAQ gained 1.03%, aided by rebounds in mega cap tech stocks. Meta leading gains for the Magnificent Seven, up 2.7%. Rotation into small caps continues. Russell 2000 rose 1.67%, and Small Cap 600 rose 1.81%. In economics, PCE data showed prices increased moderately in June. PCE up 0.1% MonM, and 2.5% YonY. Core PCE rose 0.2% MonN, and 2.6% YonY. Additionally, consumer spending and income advanced 0.3% and 0.2%, respectively. Treasury yields fell. 10Y yield fell to a one-week low down 4.9bps, and the 2Y yield fell 5bps. Bitcoin joined the rally, up 2.9%, while the USD Index ended flat, down 0.03%.
ASX SPI up 60 points
COMMODITIES

• Chile's Codelco says output falls 8% in first half of 2024.
• Vale on track to hit top end of iron ore guidance, upbeat on China.
• Citi expects copper to recover to $9,500/t within three months.
• Copper set for third weekly decline on Chinese demand woes
• Oil falls 1.5%, ends week lower on China demand fears.
• Gold rises as yields slip after US data lifts rate-cut hopes.

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