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 ended higher across the region Tuesday, with Hong Kong’s three high-growth sectors leading the gains.

• China’s Bank of Communications to discuss repricing of existing mortgage rates.

• Bloomberg consensus forecast for 2023 GDP growth shaved to 5.1% from the prior 5.2%, while 2024 was revised down to 4.5% from 4.8%.

• Vietnamese exports sank for a sixth consecutive month; factory output grew for the second month; credit growth slowed again in August.

• Japanese labor market unexpectedly softened - the unemployment rate was 2.7% in July, higher than consensus and the previous month’s 2.5%.

• Iron ore futures on China’s Dalian exchange are trading near their highest levels since mid-March after rallying ~15% from this month’s lows.

Europe, Middle East, Africa:

• European equity markets are higher. FTSE 100 outperforms as UK markets play catchup after Monday bank holiday. Basic Resources, Utilities, and Telecom lead; Construction/Materials, Healthcare, and Technology lag.

• German Gfk consumer confidence weakened to -25.5 for September versus consensus -24.3 and prior revised to -24.6 from -24.4 initially reported.

• Holzmann and Nagel reiterate the hawkish stance ahead of the September meeting.

• UK shop price inflation hit a 10-month low in August, which may ease some of the pressure on BoE policymakers.

• Unions have given notice they will initiate stoppages at Chevron’s Gorgon and Wheatstone LNG projects in Western Australia from next week and escalate the action every week after that.

• French consumers massively cutting essential purchases, Carrefour CEO warns.

The Americas:

• S&P Global Mobility cut its 2023 forecast for new vehicle sales by around 500K units to 15.2M. The report cited rising rates, tighter credit conditions, and high new vehicle pricing increasingly adding pressure on consumers.

• JM Smucker reports a beat on EPS and miss on Revenues - this is a phenomenon will we continue to see with inflation retreating from highs lowering revenues, and cost improvements leading to still stable EPS numbers. They cited tough macro challenges but marginally raised guidance.

• Best Buy posted a double beat but, barely. Comments said results were better than they expected and that this year will still remain the low point for tech and electronics demand, after the past two years of overly strong demand and pull-forward buying.

• MMM board approves $6B faulty earplug settlement.

• Walmart, Walgreens, and CVS introducing new care options normally available only at doctor’s offices.

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.