Finance Friday

Market Data

Local

Global

*Data as of 4pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary:

Asia and Australia:

• Asian equities closed lower on Friday. Disappointing Japan GDP data and increasing US-China technology tensions contributed to the negative sentiment. Mainland China markets also fell but recovered some losses by the close, while Hong Kong remained closed due to adverse weather. Australia experienced more losses to close a challenging week.

• The offshore yuan hit the 7.36 per dollar level on Friday morning, surpassing the psychologically important 7.35 level and nearing its weakest point since the inception of the offshore market in 2010.

• Alibaba is looking to regain momentum through a management shakeup.

• Itochu plans to invest in battery farms to store energy from renewable sources, partnering with Australia-based Akaysha Energy.

Europe, Middle East, Africa:

• European equity markets closed lower after failing to maintain early gains. Weakness in cyclicals, with a focus on the growth outlook, contributed to the decline.

• Ahead of next week’s European Central Bank (ECB) policy decision, economists are divided on whether there will be a pause or a hike. Inflation reports have been mixed since June, with some economies, like Germany and the Netherlands, already falling into a recession, while others have barely grown or contracted.

• In the UK, a survey by KPMG and REC revealed that hiring is declining at the fastest pace in more than three years.

• European gas prices surged as Chevron failed to avert strikes at an LNG plant.

• The euro is heading for an eight-week losing streak as the European economy faces challenges.

• Citigroup reduced its 2023 euro area real GDP growth forecast to 0.4%.

The Americas:

• Walmart has reduced starting pay for new hires, indicating a potential easing of the labor market, where companies may no longer need to offer higher wages to attract talent.

• Goldman Sachs is preparing for another round of job cuts targeting underperforming employees.

• Restoration Hardware reported Q2 EPS of $3.93 excluding items, surpassing FactSet’s estimate of $2.65. Revenue was $800.5 million, including a $25 million revenue benefit from faster-than-expected deliveries and a shift of approximately $40 million of advertising costs from Q2 to Q3, surpassing FactSet’s estimate of $790.7 million.

• The US Commerce Department launched a new probe into Huawei following the release of a new smartphone.

• Kroger will pay up to $1.2 billion to settle most nationwide opioid claims.

• General Motors proposed a new contract for employees represented by the United Auto Workers, offering 10% wage increases for the majority of workers. Newer employees could be eligible for up to a 56% wage increase over the four years of the deal. UAW President Shawn Fain described the offer as “insulting.”

The Week Ahead:

• Monday:

• Tuesday:

• Wednesday:

  • The Services PMI® surged to 54.5 percent, marking a notable 1.8-percentage point rise from the preceding July level of 52.7 percent.

  • US Employers added 187k jobs last month, unemployment rose to 3.8%.

• Thursday:

  • In the week ending September 2, the advance figure for seasonally adjusted initial claims was 216,000, a decrease of 13,000 from the previous week's revised level

• Friday:

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Disclaimer: The information contained in this report is intended for informational purposes only and should not be considered as investment advice. The information is obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.