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 traded lower again on Thursday. Japan was set to close near two-month lows, and Australia also dipped to lows not seen since early July. Hong Kong experienced a volatile day with gaps lower, recovery, and subsequent dip, while mainland bourses were also down.

• China’s shadow banking giant, Zhongzhi, is facing a potential liquidity crisis, drawing attention due to news of the company planning a debt restructuring.

• The yuan flirted with a 16-year low as the People’s Bank of China (PBOC) escalated efforts to slow its depreciation.

• Japan’s exports turned to decline, and the trajectory of machinery orders remained soft. Exports to China fell by double digits for the second consecutive month.

• Australian unemployment unexpectedly rose from 3.5% in June to 3.7% in July.

Europe, Middle East, Africa:

• European equity markets were lower.

• Norges Bank hiked its interest rate by 25 basis points to 4%, as expected, and signaled another hike in September. The bank indicated that the full impact of tightening is yet to be seen and that a somewhat higher policy rate is still needed to bring inflation to the target. The Norwegian krone (NOK) strengthened after the announcement.

• ECB’s Kazaks stated that any additional rate hikes would be very small.

• Analysts are eyeing a 6% Bank Rate for England after yesterday’s inflation data.

• Russia decided not to tighten capital controls for now after an informal agreement with exporters to surrender more of their foreign revenues.

• BAE Systems acquired Ball Corp’s aerospace arm for about $5.55 billion.

The Americas:

• A study by the San Francisco Fed indicated that US households are on track to exhaust excess savings in the current quarter.

• A bipartisan majority of Americans favor more tariffs on Chinese goods and stepped-up efforts to counter China’s military threats.

• Cisco, one of the higher-profile tech companies, reported for the July quarter. Fiscal Q4 revenue growth of 16% YoY exceeded street expectations by more than 100 basis points, and margins beat estimates due to better pricing and mix, resulting in EPS 7.5% above consensus.

• There is ongoing debate about the potential macro impact of the upcoming resumption of student loan payments. Target noted that the resumption of student loan repayments will put additional pressure on the already strained budgets of tens of millions of households.

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)

• Friday:

  • Retail Sales (UK)

  • Harmonized Index of Consumer Prices (EA)

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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.