Dip buying spurs on relief rally; what to watch today
Market commentary given to media 9.15am Tuesday, September 10, 2024
Investors breathed a sigh of relief as the US market rose for the first time in September, driven by a 'good' trifecta of reasons
- Firstly,investors were dip buying as markets entered oversold territory, with traders looking ahead to next week’s Federal Reserve meeting, which could signal the first rate cut of the cycle.
- Secondly, US inflation expectations stabilized, according to a Federal Reserve Bank of New York survey.
- Thirdly, a series of better-than-expected corporate announcements boosted tech sentiment. AMD announced heavy investments in AI chips to meet data center demand, while Oracle reported better-than-expected sales and guidance, cementing a partnership with Amazon's $Amazon (AMZN.US)$AWS.
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Looking ahead, the futures suggest a positive open for Australia's market, implying a 0.9% rise.
Focus will be on Aussie tech stocks after the Nasdaq's 1.2% rise.
Battery metal stocks and rare earths could also see dip buying, with Australia's Treasurer planning to visit China for the first time since 2017. Although copper and aluminum prices are lower today (both down 1%), iron ore has risen 2.3% in relief rally fashion. Iron ore majors may see increased buying, and with America's largest clean energy conference kicking off in California, companies supplying future-facing metals for batteries, solar, wind, and nuclear power will likely be in the spotlight.
In other news US delinquency concerns rise to the highest level since April 2020. Meaning bets are rising that minimum debt payments will be missed. Source: This is according to the Federal Reserve Bank of New York survey.
Perhaps this is a another reason that the gold price is making green shoots and heading higher.
So while US inflation eased substantially from its four-decade high in 2022, elevated price levels remain a strain on Americans' finances. And the slowdown in hiring and declining job opportunities are likely also shaping how people feel about the economy.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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151453268 witso : Hi Jess, well it just never ends in this market world, one thing after another now the American dollar mountainous Debt rears its ugly head again.
Something that Ben Johnson couldn’t even outrun but it could reflect in gold being that Brics countries may continue to buy gold to protect themselves from the green back and launch a new spondoola for trade.