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 with a mixed performance on Thursday. Japan managed to close at day’s highs despite a weaker opening, and Australia also saw a small gain.

• A significant development was the US Biden Administration signing an agreement to halt US investments into certain sectors of China, including chips, microelectronics, quantum information technology, and AI. The aim is to safeguard national security and prevent US investments from potentially boosting China’s military capabilities. Chinese firms have already placed $5 billion in orders with NVIDIA for chips.

• Higher US Treasury yields were noted by Bloomberg, which could potentially accelerate the recent selloff in Asian stocks by making valuations less attractive.

• The Philippines’ economy grew by 4.3% YoY in Q2, falling short of the expected 6.0% and lower than the 6.4% in Q1. On a quarterly basis, the economy contracted by 0.9%. The Philippine economic planning secretary stated that the economy is feeling the effects of consecutive rate hikes but expressed confidence that the country can address the issues as decelerating inflation reduces pressure on the central bank to raise rates.

• The Reserve Bank of India held the interest rate steady at 6.5%.

Europe, Middle East, Africa:

• European equity markets traded higher, led by France and Spain, although they were off their best levels following a positive close on Wednesday. Regional bond yields rose in response to higher gas prices.

• In the latest edition of the ECB’s Economic Bulletin, the Council reiterated its stance that inflation continues to decline but is still expected to remain too high for too long.

• Natural Gas supply disruptions in Australia, particularly due to potential worker strikes at significant facilities, could impact nearly 50% of Australia’s total capacity and disrupt around 9.5% of global LNG supply, according to JPMorgan. European Natural Gas prices saw a strong rally on this news, and prices are expected to remain elevated even if the initial rally was overdone.

The Americas:

• Disney reported mixed fiscal Q3 results, with revenue falling short but EBIT surpassing expectations. This was driven by better-than-expected direct-to-consumer (DTC) losses and a beat in the Parks segment, supported by International performance. The company maintained its full-year 2023 high single-digit revenue and operating income growth guidance, excluding $250 million of Star Wars hotel write-down costs. Focus was on key strategic initiatives, particularly Disney’s commitment to achieving DTC profitability by the end of 2024.

• Tapestry, the owner of Kate Spade, agreed to a $8.5 billion deal to acquire the parent company of Jimmy Choo, Capri.

• Illumina experienced a significant decline after cutting its guidance, citing cautious customer purchasing, a slower recovery in China, and the transition to NovaSeq X.

• Wynn Resorts beat EBITDAR expectations with strong performance in Macau and Las Vegas.

The Week Ahead:

• Monday:

• Tuesday:

  • US consumer credit report rose: +$17.84b; est +$13.55b.

  • US July jobs report non-farm payrolls expanded 187k, unemployment is 3.5%; est: 3.6%.

• 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)

Investment Tip of The Day

Meme 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.