Money Monday

Market Data

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Global

*Data as of 4pm WAT

Market News

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Global

Weekly Investment Watchlist

Market Commentary

Asia and Australia:

• Asian equities finished Monday mixed. Hang Seng and Shanghai lost ground as the PBOC disappointed with smaller-than-expected LPR cuts, sending both to year-to-date lows. Japan held on to modest gains, while Australia drifted lower into the close.

• China made another marginal cut to its rates, with the 1-year LPR (Loan Prime Rate) reduced by a mere -10 bps to 3.45%, disappointing market expectations of a -15 bps cut. The 5-year rate remained unchanged at 4.2%.

• The Bank of Thailand is likely to pause on rates following slower-than-expected GDP data. Thailand’s economy expanded at a slower-than-expected 1.8% in Q2 YoY, below consensus and Q1's growth rate.

• Australian LNG workers gave notice of industrial action, risking a strike if Wednesday’s bargaining round is unsatisfactory, potentially impacting natural gas prices.

• South Korea’s exports fell 16.5% YoY during the first 20 days of August, with chip exports falling 24.7%.

Europe, Middle East, Africa:

• European equity markets were higher, with energy, consumer products/services, and healthcare leading the gains, while real estate and construction/materials lagged.

• Energy led the gains as crude prices firmed due to global supply tightening. Lower exports from Saudi Arabia and Russia offset concerns about demand growth amid high-interest rates.

• German PPI came in cooler than expected and better than the previous month, with YoY PPI dropping by -6% and MoM PPI dropping by -1.1%.

• The Bundesbank’s monthly report highlighted that the German economy is still in a weak growth phase after stagnating in Q2. Weak foreign demand and increased financing costs are weighing on the economy.

• UK housebuilders were among the main decliners in European trade as the UK asking prices for home sellers fell at the fastest rate since the summer of 2018.

• Ukraine is close to a deal with global insurers to cover grain ships traveling to and from its Black Sea ports, which could potentially ease wheat prices.

The Americas:

• Goldman Sachs noted that its Equity Sentiment Indicator showed a decline last week, indicating reduced positioning metrics in comparison to the previous period.

• US consumers have drawn down more than $2 trillion in pandemic-era excess savings, which could act as a headwind to consumer spending.

• Goldman Sachs is considering the sale of a part of its wealth business catering to high-net-worth clients.

• USD/JPY is expected to resume upside momentum, with JPMorgan suggesting that Japan’s threshold for yen intervention could be around 150 yen per dollar.

The Week Ahead:

• Monday:

  • China PBOC Interest Rate Decision

• Tuesday:

  • US Existing Home Sales Change (MoM)(Jul)

• Wednesday:

  • S&P Global/CIPS Composite PMI (Aug) PREL (UK)

  • Retail Sales (MoM)(Jun) (Canada)

  • S&P Global Manufacturing PMI (Aug) PREL(US)

  • Consumer Confidence (Aug) PREL (EU)

• Thursday:

  • ECB Monetary Policy Meeting Accounts (EU)

  • Durable Goods Orders (Jul)

• Friday:

  • GFK Consumer Confidence (Aug) (UK)

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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.