Think Thursday

Market Data

Local

Global

*Data as of 4pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary

Asia and Australia:

• Asian stock markets closed higher on Thursday as technology stocks saw gains. The strongest growth was seen in Hong Kong’s IT/internet sector, supported by the property market. Mainland markets rebounded from losses seen the previous day. Japanese markets concluded the day at their highest levels, and Australia’s ASX achieved a notable increase.

• South Korea’s central bank maintained its 7D repo rate at 3.5% during Thursday’s policy meeting, marking the fifth consecutive session with unchanged rates.

• The US has chosen to extend its one-year exemption, permitting South Korean and Taiwanese chip manufacturers to continue exporting advanced semiconductor technology and related equipment to China.

• In response to Japan releasing treated radioactive water from the Fukushima nuclear power plant, China’s customs authorities imposed a ban on seafood imports from Japan.

Europe, Middle East, Africa:

• European equity markets exhibited higher trends, although they fell short of their peak levels. Notable performance came from the financial services, chemicals, energy, and technology sectors. However, basic resources and construction stocks faced lagging conditions.

• European gas prices experienced an 18% decrease as the Offshore Alliance achieved a preliminary agreement related to Woodside LNG.

• To address inflation concerns, Turkey increased its policy rate by 7.5% to reach 25%.

• The macroeconomic environment has posed challenges for UK construction firms. Data from government Insolvency Services revealed that 4,280 firms went bankrupt in the 12 months leading up to June, reflecting a 16.5% rise compared to the same period in the previous year.

• The European Commission’s most recent reading on consumer confidence indicated a decline in sentiment, with the headline figure at -16.0, lower than the consensus of -14.3 and the previous reading of -15.1.

The Americas:

• The July FOMC minutes were seen as bearish, although they generally aligned with previous Fedspeak and takeaways from the June dot plot. Attention now turns to the Jackson Hole conference, where Federal Reserve Chair Powell is expected to deliver a speech on August 25th.

• Approximately 95% of S&P 500 companies have concluded their buyback blackout windows, as reported by Goldman Sachs. Historically, August has been a strong month for buyback executions, and this month is following suit, with buybacks exceeding the 2023 average by 40% thus far.

• Speculation is growing about a potential government shutdown in the fall. It’s noted that the Treasury might be actively raising funds in anticipation of such an event, which could be contributing to upward pressure on yields. This situation reflects the risk that Fitch warned about in its US downgrade announcement last month.

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.