Wealth Wednessday

Market Data

Local

Global

*Data as of 4pm WAT

Market News

Local

Global

Weekly Investment Watchlist

Market Commentary

Asia and Australia:

• Asia equities were mostly higher on Wednesday in a quiet session. Hong Kong had a volatile day, slightly higher, while mainland bourses were down sharply.

• Overseas funds have been fleeing mainland China equity markets for the thirteenth straight session, shedding more than CNY10 billion via Stock Connect.

• Various Chinese ministries, including CSRC, MoF, NDRC, and State Taxation Administration, have jointly issued preferential tax and fee policies to drive capital market development.

• Japan’s PM Kishida is planning to extend energy subsidies, providing a mild boost to growth and price outlook.

• Japan’s flash manufacturing PMI remained in contraction at 49.7 in August, edging up from 49.6 in the previous month.

• Baidu’s revenue outperformed as its ChatGPT-style AI awaits Beijing’s approval.

• Bank of Korea (BOK) is set to hold rates amid increasing risks to economic growth.

Europe, Middle East, Africa:

• European equity markets were higher, with defensives outperforming and healthcare being the star performer. Cyclicals lagged, with energy being the main decliner.

• The current flash composite PMI for the Eurozone indicates that the private sector is contracting, with little hope for improvement in the near future due to high policy rates and rising yields.

• The UK’s flash PMIs for August showed a very weak picture for the economy, with the composite PMI hitting a 31-month low of 49.9. Manufacturing was at 42.5, and services were at 48.7, indicating a falling private sector output at the fastest rate since January 2021.

• Bank of England (BoE) analysis indicated that the share of non-financial UK companies facing debt stress is expected to rise to 50% by the year-end.

The Americas:

• After poor Flash PMI numbers from Japan, Europe, and the UK, attention is on the US PMI numbers. A softening in the services number could indicate the Fed’s tightening is beginning to work, potentially leading to a softer job market.

• Foreign investors are selling short-dated Treasuries, suggesting the case for an additional yield rise. Higher long-term yields are being anticipated due to Treasury’s $1 trillion issuance.

• Analysts are sharing views on Jackson Hole, with most seeing rates as being too high. The Jackson Hole speech could potentially temper this view, benefiting risk assets. The speech is expected to leave the door open for further rate hikes.

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)

Investment Tip of The Day

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.