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 had a mixed performance on Wednesday. The Nikkei underperformed due to negative market reactions to post-close earnings from the previous day. Hong Kong traded higher, while Mainland China markets posted losses for the third consecutive day.

• The offshore yuan rebounded from a three-week low against the dollar, attributed to a much stronger-than-expected fixing of the daily midpoint.

• Country Garden faced mounting troubles as it missed an offshore bond interest payment.

• TSMC announced plans to build an $11 billion chip manufacturing plant in Germany.

• The US plan to restrict investment in China is likely to target Chinese firms earning at least half their revenue from cutting-edge sectors such as quantum computing and AI.

• South Korea’s unemployment rate rose to a six-month high.

Europe, Middle East, Africa:

• European equity markets traded higher and were near their best levels. Banks rallied as the Italian government eased market fears surrounding a surprise bank tax. Energy and mining sectors also advanced, while travel/leisure and healthcare lagged.

• Economists warned that the Bank of England’s rate rises risk tipping Britain into a recession.

• Germany’s property sector is in a slump due to various factors, including rising interest rates, soaring building costs, and the Ukraine war.

• The primary gauge of long-term Eurozone price pressures climbed well above the ECB target, reaching 2.66%.

The Americas:

• US banks suffered around $19 billion in loan losses as borrowers felt the pain of rate rises.

• The Treasury auctions got off to a positive start, with the 3-year note sale producing a lower-than-expected yield.

• KKR purchased prime auto loans as regional lenders sold assets to improve liquidity.

• WeWork stated that there is “substantial doubt” about its ability to continue operating.

• A US judge rejected Google’s proposal to dismiss a $5 billion privacy lawsuit filed against the company.

• Hedge funds closed their underperformance after bailing on record short positions, resulting in positioning that is now the most bullish since December 2021.

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)

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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.