US equities finished at record highs on Friday with gains continuing to be driven by technology shares.
United States
Both the S&P500 and Nasdaq Composite closed up 0.8% and 0.14%, each reaching a new record high. The Dow Jones also rose 0.23% and the Russell 2000 climbed 1.05%. Among individual performers, shares in Dell Technologies surged 31% after posting better-than-expected profit and revenue, while shares in Nvidia continue to power ahead, rising 4.0% to a new record high surpassing a $2 trillion market cap.
In economic data, the latest University of Michigan consumer sentiment survey came in slightly below expectations at 76.9 vs 79.6 forecast. The latest ISM PMI reports continue to show that manufacturing remains at contractionary territory with a reading of 47.8. Traders now turn their attention to the ISM services report on Tuesday, Fed Chair Jerome Powell’s testimony before Congress on Wednesday and Thursday, before finishing the week off with the latest non-farm payroll report for February expected to show 200k jobs were added over the month.
Europe
European stocks also closed higher on Monday with several benchmarks reaching new record highs. The Euro Stoxx 600 rose 0.6% along with the DAX 0.32%, CAC 0.09% and FTSE100 0.69%. Ahead this week, retail sales for the Eurozone in January are in focus on Wednesday, followed by an ECB rate decision on Thursday with no changes expected to the 4.5% interest rate. The decision follows inflation data on Friday which was above expectations with headline prices up 2.6% over the year and core prices up 3.1% for the 12 months to February. The final reading of Eurozone GDP will follow on Friday, expected to show the economy was unchanged over the final quarter of 2023.
Australia
The ASX is expected to edge up this morning, with ASX200 futures finishing 11 points or 0.14% higher on Friday at 7,728. The index rose 0.61% on Friday reaching a new all-time high, driven by gains in materials 1.99% and financials 0.53% while health care lagged -1.52% weighed by a -1.36% drop in CSL. Shares in Life360 were a notable performer, surging 38.5% after reporting its latest earnings which showed more than 61 million people used its app each month, with revenue increasing 33% and reporting EBITDA well ahead of guidance. Lithium miners were also notable performers as prices for the battery material in China rose, with Pilbara Minerals up 4.3%.
Ahead in economic data this week, Australian GDP for Q4 2023 will be released on Wednesday, expected to show the economy expanded at 1.5% over the year and 0.2% over the quarter. Any potential signs of stimulus as part of China’s National People Congress this week, with inflation data on Friday for February also of interest.
Commodities
Oil prices extended recent gains on Friday with WTI and Brent crude both up 2.19% and 2.0% to US$79.97 and US$83.55 a barrel. Iron ore futures in Singapore finished weaker on Friday by -1.59% although are 0.84% higher this morning at US$114.20 while copper finished 0.53% higher on Friday. Gold surged 1.889% to US$2,082 an oz, with silver also 1.98% along with Bitcoin 1.89%.
Economic Calendar
4th March 2024
Australian Building Permits (MoM Jan) 11:30
Fed Harker Speech 03:00
This article was written by James Woods, Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
