Inflation ying yang. US inflation to fall, Australian CPI to rise. Trump Biden debate to put uranium in the spotlight
US inflation is expected to dip while Australia's rises,creating a mixed economic picture.The upcoming Trump-Biden debate could impact the markets,with some fearing a Trump win might hurt nuclear energy stocks that have been on a positive run.Investors are watching uranium ETFs such like URA and uranium stocks such a Constellation Energy $Constellation Energy(CEG.US$ Paladin Energy $Paladin Energy Ltd(PDN.AU$ and Boss Energy $Boss Energy Ltd(BOE.AU$ for potential buying opportunities should they pull back.
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- The longer-term narrative for equities remains positive, supported by US inflation coming down and earnings growing stronger than expected. This will be reinforced this week the Federal Reserve's preferred measure of inflation gauge (released June 28) expected to show inflation fell from 2.7% to 2.6% YoY in May. April's core PCE (ex food and energy prices) showed that inflation fell to its lowest level since March 2021.
- This will be a stark contrast to Australia, where the narrative is that inflation is starting to trend up; with CPI for May (out Wednesday) expected to show inflation rose from 3.6% to 3.8%; with Aussie inflation and rates to remain higher for longer.
- In China, industrial profits released Thursday, are expected to show China's industrial profit growth slowed, which should illustrate the need for more policy support.
- The US Election and market impact is in focus. The upcoming Biden-Trump debate, the earliest in American history, could have lasting market implications for weeks or months.
Stocks like Trump Media and Phunware might see increased interest based on optimism surrounding a potential Trump victory.
So watch stock that are catching bids on optimism of Trump potentially getting in such as Trump Media and Phunware.
Nuclear energy stocks to face a trim on Trump fears?
Watch stocks and sectors that could see selling on fears of Trump getting in, remembering that Donald Trump has a history of tearing up prior policies set by his predecessors or by Washington'ss establishment. When Trump was elected in 2017, he swiftly withdraw the United States from the Paris climate accord, the Trans-Pacific Trade Partnership and the nuclear deal with Iran.
So consider watching Nuclear energy stocks that could face fear selling. Nuclear stocks have been benefiting from structural tailwinds, such as rising demand from government, government bodies and corporate. Also consider the AUKUS defence pact with Australia, the US and the United Kingdom. I wonder if Trump will withdraw the US from that? Some are questioning this. So watch the world's biggest Uranium ETF, URA $Global X Uranium ETF(URA.US$ and key stocks such as Constellation Energy $Constellation Energy(CEG.US$ in the US, and Paladin Energy $Paladin Energy Ltd(PDN.AU$ and Boss Energy $Boss Energy Ltd(BOE.AU$ on the ASX.
Uranium stocks to watch
A list of the 20 biggest holdings in the URA ETF can be found below
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Moomoo Official Market Strategist
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151453268 witso : For those people willing to remain living in oz and continuing to slave for the banks, i think the news will only get worse this ship is totally adrift the compass is pointing to northward movement in interest rates and higher for longer will be the only outcome if policy makers keep stoking inflation with unprecedented immigration,pork barrel tax cuts Unrealistic renewable energy policy,incredible wastage and insulting spending of tax payers money, all adding up to piracy by the big end of town, i can see it at woolys at the realestate agents at the bowser at the daycare center at the pub at the fast food outlet in my rates notice, kids sports fees and it goes on but can you blame realestate for lining their pockets in an artificial boom procuring money from wealthy immigration buyers clubs and inflating the property market well beyond the reach of the current generational wage affordability effectively locking them out for potentially decades we probably cant, but this is a creation of bad economics and is damaging the foundation of an Aussie fair go .