Wealth Wednessday

Ranora Daily - Your daily source for reliable market analysis and news.

August 16, 2023

Market Data

Local

Global

*Data as of 4pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary

Asia and Australia:

  • Asian equities ended lower across the board on Wednesday. Hong Kong stocks reached ten-week lows, mainland markets experienced sharp declines, Japan benchmarks gapped lower and closed at troughs, and Australia’s ASX broke a support line to end at one-month lows.

  • A shadow bank in China, Zhongrong International Trust, has been missing payments on financial products since July, adding to concerns despite the relative solidity of larger banks.

  • Average new home prices in China’s major cities fell 0.1% YoY in July 2023, following a flat reading in June, due to the property crisis and economic stagnation.

  • China has reportedly asked some funds not to sell equities to prevent a slump in their market. Meanwhile, the country received another set of GDP downgrades from major banks, estimating growth to be less than 5%.

  • New Zealand maintained its central bank cash rate steady at 5.5% and reiterated that policy settings would remain restrictive for the foreseeable future.

Europe, Middle East, Africa:

  • European equity markets were under pressure.

  • UK jobless claims increased, but wage growth accelerated to a new high. This situation doesn’t bode well for inflation, as sticky wage inflation has been a concern for core inflation and may exert pressure on the Bank of England (BoE) to continue hiking rates.

  • On the other hand, UK food price inflation dropped sharply by 2.2%, indicating a potential moderation in headline inflation.

  • German ZEW sentiment showed a slight improvement in August at -12.3, surpassing the consensus of -14.7 and the previous -14.75.

  • The Central Bank of Russia hiked its key rate by 3.5% to 12% at an emergency meeting, aiming to address recent rouble weakness and maintain stability.

  • European governments were increasingly imposing windfall taxes on profit-making businesses.

  • Saudi Arabia and UAE increased purchases of Nvidia chips crucial for developing AI software.

The Americas:

  • Target reported that adjusted earnings more than quadrupled during the quarter that ended in late July. However, comparable sales dropped 5.4%, worse than the projected 3.8% fall, due to weakness in discretionary categories.

  • Both Schumer and McConnell voiced support for a stopgap funding bill through early December.

  • Intel was set to call off its $5.4 billion acquisition of Tower Semiconductor as Chinese approval time ran out.

  • Tesla made a second round of price cuts in China during the week.

  • Bond investors bet on higher rates for longer as the US economy demonstrated resilience.

The Week Ahead:

  • Monday:

  • Tuesday:

    • Industrial Production (China)

    • Retail Sales (US)

  • Wednesday:

    • Consumer Price Index (UK)

    • Gross Domestic Product (EA)

    • Building Permits (US)

    • Industrial Production (US)

    • FOMC Minutes (US)

    • US July retail sales MoM come in at +0.7%; est: +0.4%.

  • Thursday:

    • Initial Jobless Claims (US)

  • Friday:

    • Retail Sales (UK)

    • Harmonized Index of Consumer Prices (EA)

Investment Tip of The Day

Regularly review and update your estate planning documents, such as your will, trust, and power of attorney. Ensure they reflect your current financial situation, family circumstances, and long-term objectives

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.