Money Monday

Market Data

Local

Global

*Data as of 4pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary

Asia and Australia

• Asian equities had a mixed ending on Monday with subdued trading. Japan managed to close slightly higher after reversing early losses. Australia closed lower, while Hong Kong remained flat and mainland markets fell, mainly due to steep declines in healthcare stocks.

• The BoJ’s Summary of Opinions was released, indicating that the YCC tweak was aimed at ensuring the smooth operation of monetary easing.

• The JGB yield curve has steepened notably since the BOJ’s policy tweak in late July. The 10-year JGB yield has risen by 17 basis points since then, recently reaching a nine-year high. This has been accompanied by a continuing depreciation of the yen.

• Healthcare and biotech stocks in Shanghai and Hong Kong faced sharp declines on reports that Beijing’s crackdown on corruption in the sector had expanded, with as many as 155 healthcare officials now under investigation, twice the number in 2022.

• According to Goldman Sachs data, foreign buying of Japanese stocks exceeded that of Chinese peers during H1 for the first time since 2017.

• Indonesia’s Q2 GDP grew at the fastest pace in three quarters.

• Iron ore prices declined amid speculation surrounding potential steel production cuts in China.

Europe, Middle East, Africa

• European equity markets experienced broad declines, following a substantial weekly drop in the STOXX 600 last week, marking one of the steepest drops since the beginning of July.

• Major European companies have reportedly suffered direct losses of at least €100 billion from their operations in Russia since the conflict in Ukraine began in 2022, as reported by the FT.

• Germany’s industrial output remains 5% below pre-pandemic levels, driven by declines in the automotive and construction sectors, indicating weak demand and increasing the likelihood of an economic slowdown.

• Siemens Energy lowered its FY guidance due to higher losses from its wind unit.

• Research suggests that ECB rate hikes will trim 4% of economic output.

• Saudi Arabia increased prices for Asian crude oil customers by 30 cents a barrel.

The Americas

• Apple is hiring for dozens of roles to enhance its expertise in generative design, adapting it for iPhones and iPads.

• Berkshire Hathaway’s on-hand cash nears $150 billion, and operating earnings rose by 7%.

• US regional banks continue to rely on government support, tapping hundreds of billions to stay afloat.

• Tyson Foods missed earnings expectations, reporting Q3 EPS of $0.15 ex-items compared to FactSet’s $0.26, and revenue of $13.14 billion compared to FactSet’s $13.63 billion. The gross margin was 5.2%, lower than the expected 6.6%, suggesting that disinflation is impacting pricing power.

The Week Ahead:

• Monday:

• Tuesday:

  • Exports (China)

• Wednesday:

  • Consumer Price Index (China)

• Thursday:

  • Consumer Price Index (US)

  • Economic Bulleting (EA)

  • Monthly Budget Statement (US)

• Friday:

  • Gross Domestic Product (US)

  • Consumer Price Index (France)

  • Producer Price Index ex. Food & Energy (US)

  • Michigan Consumer Sentiment Index (US)

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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.