Investing.com - With the first trading session of 2024 is set to commence, Australian shares showed little change at the open. This indicates a pause in the worldwide equity surge that has significantly inflated stock values over the preceding two months.
ASX 200 Futures suggest a modest decline of 0.3%, or 23 points, at Tuesday's opening bell, down from Friday's close of 7590.8 points. This places the ASX tantalizingly close to the all-time high of just 50 points short, achieved back in August 2021.
In 2023, the S&P/ASX 200 index capped off the year with an impressive annual growth of 7.8% – marking its highest return since 2021. The index had not seen a more substantial gain since 2021 when it leaped by 13%. In contrast, it witnessed a 5.5% decline in 2022.
Based on the current market anticipations, the Reserve Bank of Australia is all set for two cash rate reductions this year, with the initial cut expected in June.
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On the other side of the globe, Wall Street's rally, which brought the S&P 500 to a whisper away from setting a new record in the last week of 2023, ended the year on a subdued note. Wall Street will observe a closure for New Year’s Day.
The S&P 500 saw a minor decrease of 0.3%, finishing at 4769.8. Nonetheless, it managed to wrap up the year on a high note with a nine-week winning streak. In the previous session, it was merely four points shy of the record set in January 2022. The index celebrated a notable annual rally of 24%.
The tech-dominated Nasdaq 100 finished 2023 with a whopping 54% increase, marking its most profitable year since 1999. The Nasdaq Composite posted a considerable advance of 43% for 2023.