Think Thursday

Market Data

Local

Global

*Data as of 4pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary:

Asia and Australia:

• Asian equities declined; Hang Seng and mainland stocks dropped despite a property sector rally. Japan and Australia also saw losses.

• China banned Apple phones in government and sensitive sectors as a response to US actions, impacting China's semiconductor stocks, including SMIC (-7%).

• China's exports shrank by 8.8% YoY for the fourth consecutive month, better than the expected 9.2% fall. Imports also fell by 7.3%, marking the sixth consecutive month of decrease.

• The trade surplus decreased more than expected, down to $68.36 billion.

• Results from the 30-year JGB auction showed low demand, causing prices to drop and yields to rise.

• Bank Negara Malaysia maintained its overnight policy rate at 3.0% as forecast.

• The Australia gas strike was delayed.

• Headline inflation in Emerging Asia increased due to higher food and energy costs.

• August YoY CPI readings:

  • Taiwan: 2.3% (up from 1.9% in July)

  • Indonesia: 3.3% (up from 3.1% in July)

  • Vietnam: 3.0% (up from 2.1% in July)

  • Thailand: 0.9% (up from 0.4% in July)

  • South Korea: 3.4% (up from 2.3%)

Europe, Middle East, Africa:

• European equity markets were mixed, with basic resources and tech sectors declining, while defensives and insurance strengthened.

• Eurozone final Q2 GDP came in lower than expected at 0.1% q/q (versus 0.3% expected), raising concerns about balancing growth and conquering inflation.

• Poland unexpectedly cut interest rates from 6.75% to 6% despite high inflation (10.1% YoY), possibly due to upcoming elections.

• Luxury stocks in Europe were affected by remarks suggesting that inflation is impacting luxury demand.

• Expectations for a Bank of England (BoE) rate hike dipped to their lowest level since June; the terminal rate is now expected to be under 5.75%.

• Saudi Arabia raised Asia crude selling prices for the fourth consecutive month, with a smaller-than-expected increase.

• German industrial production numbers were weaker than expected at -0.8% (versus -0.5% expected).

The Americas:

• The Bank of Canada maintained rates at 5%, seen as a hawkish pause.

• The US Trade Deficit was slightly higher than expected at -$65 billion.

• The FTC was reportedly preparing an antitrust lawsuit against Amazon, targeting its marketplace and calling for structural remedies.

• The Biden administration canceled Alaskan oil leases to limit Arctic drilling.

• The Fed's Beige Book reported modest economic growth during July and August, with stronger consumer spending in tourism but slower retail spending in discretionary items. Some reports suggested consumers may have exhausted pandemic-era savings.

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:

  • Unemployment Claims (US) 216K

• 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.