Wealth Wednesday

Market Data

Local

Global

*Data as of 4pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary:

Asia and Australia:

• Asian equities were slightly lower on Wednesday, with Japan’s Nikkei and Topix indices closing mixed and Australia’s ASX 200 index finishing lower.

• The Hang Seng index in Hong Kong was flat, while mainland Chinese markets were notably lower.

• A Reuters Tankan survey showed that Japanese manufacturer confidence fell by the most in eight months, while services sector sentiment also dropped sharply.

• China said it is not barring iPhone purchases, but it flagged security incidents.

• Hong Kong-listed automakers fell sharply after the European Commission said it would launch an anti-subsidy investigation into Chinese electric vehicles.

• The latest Reuters consensus poll found that economists expect China’s GDP growth to slow to 5.0% in 2023, down from 5.5% in 2022.

• Offshore yuan borrowing costs in Hong Kong surged this week as China ramped up its efforts to prevent the currency from depreciating further.

Europe, Middle East, Africa:

• European equity markets were lower on Wednesday, with the retail sector, industrial goods and services, utilities, and construction sectors all under pressure. Banks were the only sector in positive territory.

• UK GDP data came in lower than expected, with the economy shrinking by 0.5% in August.

• Reuters sources said that the European Central Bank expects inflation to remain above 3% in the coming months, which has reinforced expectations that the ECB will raise interest rates again on Thursday.

• Eurozone industrial production also missed expectations, falling by 1.1% in August.

• Credit Suisse said that it still sees a recession in Europe as likely, citing a number of factors, including weak PMIs, a flattening yield curve, and declining real money supply.

• BofA’s latest European fund manager survey showed that while a majority of investors see European equities falling in the coming months, fading bets on a recession have led an increasing number to take a more optimistic view on stocks in the medium term.

The Americas:

• Apple held its annual product event on Tuesday, unveiling new iPhones, Apple Watches, and AirPods. The iPhone 15 Pro Max was priced at $100 more than its predecessor.

• Boeing delivered 35 aircraft in August, down from 43 in July and 60 in June. The company is facing supplier-related issues with its 737 MAX jets.

• CBRE, a real estate services company, pushed back its call for a US recession to late 2023 or early 2024.

• American Airlines revised its guidance for the third quarter, saying that it expects adjusted earnings per share of 20 cents to 30 cents, down from 85 cents to 95 cents previously.

The Week Ahead:

• Monday:

• Tuesday:

• Wednesday:

  • Manufacturing Production (YoY) (GB)

  • Industrial Production (MoM) (EA)

  • The consumer price index, rose 0.6% for the month, and was up 3.7% from a year ago.

• Thursday:

  • Employment Change s.a (AU)

  • Retail Sales (MoM) (US)

• Friday:

  • Industrial Production (YoY) (CN)

  • NY Empire State Manufacturing Index (US)

  • Industrial Production (MoM) (US)

  • Michigan Consumer Sentiment Index (US)

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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.