Pre-Market Report – Friday 13 September: US markets rise on PPI | Gold hits record

US equities rose overnight after PPI data reinforced expectations for a 25bps cut by the Fed next week. The Dow Jones finished near session highs, up 235 points (+0.58%). Up 246 points at best. Down 196 points at worst. The S&P 500 gained 0.75%, with all sectors ending higher and the NASDAQ rose 1.0%, with Nvidia +1.9% leading gains in chipmakers, but Micron Technology slid 3.79% on a broker downgrade. The more economically sensitive small-cap Russell 2000 outperformed, adding 1.22%. PPI data rose 0.2% MonM in August following a downwardly revised flat reading in July, a touch above expectations of a 0.1% rise. Initial jobless claims came in line with expectations rising 2k from the previous week to 230k. PPI and Initial jobless claims were effectively repeating yesterday’s CPI data, clearing the way for next week’s 25bps cut.

ASX to rise. SPI Futures up 45 points (+0.56%).

COMMODITIES

• Vale sees 10% of its iron ore production coming from tailings by 2030.
• Gold hits all-time high as Fed rate-cut hopes bolster appeal.
• IEA cuts 2024 oil demand growth forecast on China slowdown.
• Oil rises 2% as storm batters US Gulf of Mexico production.
• Copper jumps to almost two-week high on signs of firmer Chinese demand.

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