Investing.com - The Australian stock market added 0.4% at Monday's open, mirroring the recent surge in U.S. markets driven by speculations of the Federal Reserve implementing interest rate cuts within the year.
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The upcoming week in the U.S. is set to be critical, with investors keenly watching the preliminary estimate of the Q4 GDP growth rate, PCE Price Indexes, and personal income and expenditure data. Other key economic indicators, including new and pending home sales, durable goods orders, and Manufacturing and Services PMIs, will also be under scrutiny.
Meanwhile, the earnings season is gearing up to hit full stride, with profit reports from some of the biggest names across industries expected to roll out. Tech behemoths Microsoft (NASDAQ:MSFT) and Tesla (NASDAQ:TSLA), payment processing giant Visa (NYSE:V), healthcare leader Johnson & Johnson, consumer goods powerhouse Procter & Gamble, and entertainment juggernaut Netflix (NASDAQ:NFLX) are among the companies slated to reveal their financial results.
Technology industry stalwarts such as Intel (NASDAQ:INTC) and IBM (NYSE:IBM) , telecom heavyweights T-Mobile and Verizon (NYSE:VZ), healthcare innovator Abbott Laboratories (NYSE:ABT), and financial services company American Express (NYSE:AXP) are also set to disclose their earnings. The forthcoming data and corporate results will provide investors with a clearer picture of the current economic scenario and offer insights into the market's potential direction.
In Australia, investors are gearing up for the release of crucial economic data. The spotlight is on the National Australia Bank business confidence index for December and the Purchasing Managers' Index figures for January.
U.S. Treasury yields saw a minor decrease, while oil prices spiked due to concerns over potential supply disruptions arising from recent tensions in the Middle East. The futures market predicts a 50% chance of the Federal Reserve implementing a rate cut in March, with six cuts anticipated throughout the year.
Among commodities, crude oil prices experienced a dip but ended the week on a higher note due to supply concerns triggered by conflicts in the Middle East. U.S. crude fell by 0.9%, settling at $US73.41 per barrel, while Brent slipped by 0.7% to $US78.56 per barrel.
Iron ore futures saw a decline, closing at $US135.88 a tonne, extending a three-week downward trend driven by challenging conditions in the steelmaking industry.
In the stock market, South32 has lowered its copper production expectations for the fiscal year 2024 by 3% but predicts operating unit costs for H1 to be within or below estimates. Meanwhile, Lynas Rare Earths' production saw a more than 50% drop in Q4 2021 due to a temporary halt but is anticipated to bounce back in 2022. Companies like Fortescue (ASX:FMG) Metals, BHP (ASX:BHP) Group, and Rio Tinto (ASX:RIO) might experience fluctuations following Andrew Forrest's decision to shut down his West Australian nickel mines, Wyloo. This move reflects ongoing worries about nickel oversupply, falling prices, and job losses.