Trading Tuesday

Market Data

Local

Global

*Data as of 4pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary

Asia and Australia:

• Asian equities closed with mixed results on Tuesday. Hong Kong and mainland markets experienced significant losses, while Japan’s Nikkei saw a sharp late-session spike, ending in positive territory. Australia ended in the red, while Seoul, Taipei, and Southeast Asia had mixed performances. India posted modest gains.

• China’s stock market surged previously due to stimulus measures in the property sector but retreated the next day due to weaker Caixin PMI services data. Caixin services PMI for August was reported at 51.8, falling short of consensus expectations of 53.5 and below July’s 54.1. Concerns regarding economic data may limit potential market rallies.

• Country Garden made interest payments on two-dollar bonds just before the expiration of a 30-day grace period.

• In the Philippines, inflation resurged due to rising rice prices, leading the government to impose price caps.

• The Reserve Bank of Australia (RBA) maintained its policy rate at 4.1% during Governor Lowe’s final meeting. This marked the third consecutive meeting without a rate hike. Inflation has peaked but remains above the RBA’s policy rate at 4.9%. The RBA reiterated that further tightening may be necessary.

• Several brokerages revised their yen outlook downward. Goldman Sachs reduced its year-end forecast to 150 yen per dollar from 140, followed by similar downgrades from JPMorgan (152 from 142) and Barclays (146 from 135). BofA also adjusted its year-end projection to 150 from the previous 145.

• South Korea’s CPI edged higher to 3.4% year-on-year from July’s 2.3%, surpassing consensus expectations of 2.7%. This marks the first time in seven months that prices accelerated and the highest rate since April.

Europe, Middle East, Africa:

• European equity markets mostly showed a softer performance. Financial services, basic resources, and energy sectors advanced, while China-exposed sectors, such as Construction and materials, Chemicals, and Luxury, lagged. Weaker data on China’s services activity contributed to the downturn in China-exposed sectors.

• Retail was among the worst-performing sectors in European trade, as Barclays data indicated that UK consumer spending growth slowed down last month, indicating a weakening economy.

• In August, the HCOB Eurozone Composite PMI revealed a faster contraction in the economy, with services activity declining. The HCOB Eurozone Composite PMI Output Index dropped to a 33-month low of 46.7, down from July’s 48.6. The HCOB Eurozone Services PMI Business Activity Index fell to a 30-month low of 47.9, below the preliminary reading of 48.3 and the prior month’s 50.9.

The Americas:

• The US unemployment report released on Friday was seen as relatively benign. Despite an increase in the unemployment rate from 3.5% to 3.8%, the market suggests that the Federal Reserve might be done with rate hikes. The report also showed an addition of 187,000 payrolls, but prior revisions indicated a reduction of 110,000 jobs. This leaves the job market showing signs of weakening.

• Chevron LNG workers plan to strike for two weeks starting on September 14 unless substantial progress is made in negotiations.

• The upcoming week in the US is relatively quiet, with some scattered Fed speakers and the major economic data point being the Service PMI data.

The Week Ahead:

• Monday:

• Tuesday:

• Wednesday:

  • ISM Services PMI (US)

• Thursday:

  • Unemployment Claims (US)

• Friday:

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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.