Finance Friday

Market Data

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Global

*Data as of 4pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary

Asia and Australia:

• Asian equities ended the week weaker once again as the risk-off sentiment continued.

• Hong Kong experienced the greatest losses, shedding another 2.0%, while mainland bourses also declined by varying amounts. Tokyo, Seoul, and Taipei all ended the week lower. Australia closed slightly higher.

• Out of 38 state-owned property developers listed in Hong Kong and the mainland, 18 reported preliminary losses in H1, up from 11 that warned of full-year losses in 2022.

• Evergrande filed for Chapter 15 Bankruptcy in New York, with restructuring proceedings occurring in Hong Kong and the Cayman Islands. The move reflects ongoing troubles in China’s property market.

• The People’s Bank of China (PBOC) set a daily yuan fixing with the strongest bias on record, signaling the central bank’s growing unease with the pace of depreciation.

• Malaysia’s economy grew 2.9% in Q2, slightly below the consensus forecast of 3.3% and down from Q1's 5.6%, attributed to slower exports due to restrictions earlier in the year.

• Japan reported inflation largely in line with expectations. Core CPI rose 3.1% YoY in July, easing from 3.3% in the previous month. Ex-food and energy inflation was also in line at 4.3%.

Europe, Middle East, Africa:

• European equity markets were lower, following the trend of broad weakness in Asia. The Euro Stoxx 50 broke below its 200-day moving average.

• No surprises for the final Eurozone inflation print for July. Headline inflation was confirmed at 5.3% YoY, while core inflation was confirmed at 5.5% YoY.

• Dutch payment processor Adyen experienced a selloff, down ~40% in the previous session after H1 earnings fell sharply below Street forecasts and the company’s own targets.

• UK retail sales dropped by 1.2% from the previous month in July 2023, marking the first contraction in retail trade since March.

The Americas:

• The Philly Fed Manufacturing survey increased more than expected in August, returning to expansionary territory, which has led to market speculation about the Fed’s future actions.

• Money market assets hit another all-time high at $5.57 trillion, with more funds pouring in.

• Microsoft plans to start selling a new version of Databricks software to help customers create AI apps on their own.

• A new report finds that an impending strike against the big three automakers could cost $5 billion in just 10 days.

• Cleveland Cliffs’ bid for US Steel promises national security through consolidation but raises concerns about competition.

The Week Ahead:

• Monday:

• Tuesday:

  • Industrial Production (China)

  • Retail Sales (US) MoM come in at +0.7%; est: +0.4%.

• Wednesday:

  • Consumer Price Index (UK) comes in at 6.8%; est: 6.7%

  • Gross Domestic Product (EA)

  • Building Permits (US)

  • Industrial Production (US)

  • FOMC Minutes (US)

  • US July retail sales MoM come in at +0.7%; est: +0.4%.

• Thursday:

  • Initial Jobless Claims (US) come in at 239k; est: 240k.

• Friday:

  • Retail Sales (UK)

  • Harmonized Index of Consumer Prices (EA)

Investment Tip of The Day

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.