### Summary
The People's Bank of China is expected to cut interest rates in order to calm the nervousness and concern sweeping through the country's financial markets.
### Facts
- 🔍 The People's Bank of China is expected to cut interest rates on Monday.
- 🔒 The Chinese central bank may have to make a big move in order to soothe nervousness in the financial markets.
- 🏦 The Bank of Korea and Bank Indonesia are expected to keep interest rates on hold on Thursday.
- 💼 The Chinese central bank's decision and wider developments around China's markets and economy will dominate investors' thinking this week.
- 💰 The U.S. Federal Reserve's annual Jackson Hole Symposium and the BRICS summit in South Africa will also be closely watched.
- 📉 Chinese economists are slashing their GDP growth forecasts due to deflation, slumping trade activity, and an imploding property sector.
- 💣 The real estate crisis poses a threat to growth and raises questions about the strength of the shadow banking system.
- 📉 Chinese blue chip stocks are down 6% in the last two weeks, and financial conditions are tightest since December.
- 🌍 Global markets are experiencing volatility, with a surging dollar, rising U.S. Treasury yields, and stock markets experiencing vertigo.
- 📈 Key developments to watch on Monday include the China interest rate decision, Thailand GDP for Q2, and Hong Kong inflation for July.
### Summary
The People's Bank of China is expected to cut interest rates, but may need to take a larger action to calm the uncertainty in the market. Other factors like the US Federal Reserve's Jackson Hole Symposium and the BRICS summit will also impact investor sentiment.
### Facts
- 💰 The People's Bank of China is expected to cut interest rates to soothe market concerns.
- 💼 Bank of Korea and Bank Indonesia are expected to keep interest rates on hold this week.
- 🌍 The US Federal Reserve's Jackson Hole Symposium and the BRICS summit will affect investor thinking.
- 📉 Chinese policymakers' conservative nature may result in more aggressive moves in the interest rate cut.
- 🔒 The currency is already weak and vulnerable, posing a risk to further cuts.
- 📉 Economists are lowering Chinese GDP growth forecasts, doubting the country will achieve its 2023 goal.
- 🏘️ The real estate crisis and the scale of indebtedness raise questions about the stability of the shadow banking system.
- 🔧 Beijing is taking steps to boost confidence, but measures seem insufficient.
- 📉 Chinese blue chip stocks have decreased by 6% in the last two weeks.
- 🌐 Global markets are facing a deteriorating backdrop, with the dollar surging, US Treasury yields rising, and stock markets experiencing instability.
- 🗓️ Key developments on Monday include China's interest rate decision, Thailand's Q2 GDP, and Hong Kong's July inflation.
### Summary
Asian stocks were mixed as traders awaited the Federal Reserve's summer conference to determine if more interest rate hikes are necessary to deal with inflation.
### Facts
- 📉 Shanghai and Hong Kong stocks retreated, while Tokyo and Seoul stocks advanced.
- 📉 The Hang Seng in Hong Kong lost 1.1%.
- 📈 The Nikkei 225 in Tokyo advanced 0.6%.
- 📈 The Kospi in Seoul gained 0.6%.
- 📊 The S&P 500 index ended the week lower by 0.1%.
- 💵 Some investors are shifting money to bonds as higher interest rates make their payout bigger and less risky.
- 💹 Tech and other high-growth stocks are some of the biggest losers due to higher rates.
- 📉 Ross Stores jumped 5% after reporting stronger-than-expected results, while Estee Lauder fell 3.3% despite reporting stronger profit and revenue than expected.
- ⛽ Benchmark U.S. crude gained 73 cents to $81.39 per barrel, while Brent crude reached $85.55 per barrel.
- 💲 The dollar slightly edged up to 145.35 yen, while the euro rose to $1.0882.
(Source: AP News)
### Summary
- European stocks rebound after a drop last week, while bond yields rise ahead of the Fed's Jackson Hole event.
- China's smaller-than-expected rate cuts and weak economic data disappointed investors.
### Facts
- 📈 European stocks edge higher after last week's rout.
- 📉 China stocks hit a 9-month low as rate easing underwhelms.
- China's central bank trims its one-year lending rate by 10 basis points, while leaving its five-year rate unchanged.
- Expectation remains for further stimulus from China.
- Asian shares decline due to disappointment, with Chinese blue chips falling to a nine-month low.
- Energy companies outperform as oil prices rise.
- Oil prices edge higher after a seven-week winning streak.
- Bond market sell-off leads to higher government borrowing costs.
- U.S. Treasury yields continue to rise, with the 30-year yield touching a fresh 12-year high.
- The U.S. Federal Reserve's Jackson Hole conference is the key event for the week.
- Markets anticipate that Fed Chair Jerome Powell will address rising yields and strong economic data.
- Polls indicate that a majority of analysts believe the Fed is done hiking rates.
- Traders bet on a just under 40% chance of a final Fed hike by November.
- U.S. dollar trades flat after five weeks of gains.
- Gold prices affected negatively by the rise of the dollar and yields.
- Prices for liquefied natural gas (LNG) supported by a potential strike at Australian offshore facilities.
- Dutch payments processor Adyen's shares drop amid concerns over weak earnings.
- Earnings from Nvidia will be closely watched.
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Asia-Pacific markets fell on Friday as Japan's core inflation rate dropped to 3.1% and Chinese real estate giant Evergrande filed for bankruptcy protection in a U.S. court.
Asia-Pacific markets fell ahead of the Jackson Hole meeting as investors anticipated signals on U.S. monetary policy, with Japan's Nikkei 225 leading losses, while Meituan shares dipped after a weaker Q3 outlook.
Asian equities rise as weak U.S. labor data suggests the Federal Reserve is done with interest rate hikes, while Chinese stocks gain for a third consecutive day.
Asia-Pacific markets fell ahead of Australia's central bank's rate decision, as well as inflation and business activity readings from across the region, while Singapore appoints Chia Der Jiun as the next managing director of the Monetary Authority of Singapore starting on January 1.
U.S. stocks slipped as worrying data out of China and a spike in oil prices following the extension of Saudi Arabian production cuts weighed on the market. The Dow Jones Industrial Average fell 0.6%, while the S&P 500 lost 0.4% and the Nasdaq dipped 0.1%.
US stocks dropped on Wednesday as fears of more Federal Reserve rate hikes circulated, with Big Tech names like Apple and Nvidia dragging major indexes lower. Boston Fed President Susan Collins warned that further policy tightening could be warranted, while the Fed's Beige Book indicated softer activity growth and a cooling labor market in July and August.
The Wall Street Journal reports a notable shift in the stance of Federal Reserve officials regarding interest rates, with some officials now seeing risks as more balanced due to easing inflation and a less overheated labor market, which could impact the timing of future rate hikes. In other news, consumer credit growth slows in July, China and Japan reduce holdings of U.S. Treasury securities to record lows, and Russia's annual inflation rate reached 5.2% in August 2023.
Asian markets experienced mixed results, with Australia's S&P/ASX 200 falling and Hong Kong's Hang Seng index dropping by about 1%, while Japan's markets were marginally positive; tech investor Paul Meeks plans to buy tech stocks after the correction, and Federal Reserve officials are feeling less urgency for another interest rate hike due to improved inflation data. Additionally, Apple shares fell amid China concerns but an analyst is holding off on shorting the stock, Morgan Stanley upgraded Tesla stock due to its autonomous driving supercomputer, HSBC revealed its "must see stocks" in the UK, and consumer discretionary stocks gave the S&P 500 an upward push.
Summary: Asian shares mostly decline as investors await U.S. consumer price data and the Federal Reserve's decision on interest rates.
Global markets ended higher as energy stocks climbed supported by Saudi Arabia and Russia's decision to extend supply cuts, while Wall Street's key indexes saw weekly declines due to investor concerns over interest rates and anticipation of upcoming U.S. inflation data. In Asian markets, Japan's Nikkei 225 ended down, Australia's S&P/ASX 200 was up, and Chinese shares rose following improved data on consumer price inflation. The Eurozone's economic growth outlook has been downgraded by the European Commission, and crude oil prices fell.
Stock indices closed in the red, with the Nasdaq 100, S&P 500, and Dow Jones Industrial Average all experiencing declines, while the technology sector underperformed and the energy sector led the session. The U.S. 10-Year Treasury yield dropped, while the Two-Year Treasury yield increased. The Small Business Optimism Index for August decreased, with inflation cited as a major concern among small business owners. Stocks opened lower on Tuesday, and U.S. futures trended lower as well. This week's focus will be on the Consumer Price Index and Producer Price Index data, which could impact the Federal Reserve's decision on rate hikes. Oracle's stock fell after missing sales estimates, while Casey's General and Tesla saw gains. JPMorgan's CEO criticized new Basel III regulations, and European indices traded in the green. In Asia-Pacific, markets ended mixed as traders await U.S. inflation data.
Asian stock markets fell as Wall Street experienced a decline, with investors preparing for key US inflation data, and a spike in oil prices added to concerns about persistent price pressures and the interest rate outlook.
Asia-Pacific markets slipped as investors await central bank decisions, including the U.S. Federal Reserve's announcement on Thursday and the Bank of Japan's meeting on Friday, while Australia's central bank will release its policy meeting minutes on Tuesday and China's central bank is set to release loan prime rate decisions on Friday.
India's benchmark stock indexes fell as investors reacted to economic developments in China and awaited policy decisions from major central banks, including the U.S. Federal Reserve. The Nifty 50 fell 0.09% and the Sensex lost 0.16%, potentially ending an 11-day winning streak.
Asia-Pacific markets fell as traders awaited the Reserve Bank of Australia's policy meeting minutes, while European markets were weighed down by a spike in corporate lending rates; meanwhile, Goldman Sachs predicts that the Fed is done hiking this year and the recent increase in oil prices could benefit London's prime office real estate market.
Asia-Pacific markets are expected to continue declining as investors wait for China's loan prime rates and the U.S. Federal Reserve's rate decision, while oil prices rise due to supply concerns and all 11 sectors in the S&P 500 trade down.
U.S. stocks slumped after the Federal Reserve indicated that it may not cut interest rates next year as much as initially expected, causing concerns among investors on Wall Street.
Asian stocks dipped across the board as investors interpreted the US Federal Reserve's latest policy statements as signaling higher-for-longer interest rates.
The U.S. stock markets closed in the red as the Federal Reserve kept the federal funds rate unchanged, leading to losses in sectors such as communication services and information technology, while Asian stocks fell due to concerns over higher U.S. interest rates.
Equity markets in Asia are expected to open lower following a sharp decline in U.S. stocks, with futures in Japan, Hong Kong, and Australia all pointing to declines; meanwhile, India's benchmark stock indices declined for the third consecutive day after the U.S. Federal Open Market Committee (FOMC) kept the interest rate unchanged but signaled the possibility of another rate hike in 2023.
Asia-Pacific markets fell as the Bank of Japan kept rates unchanged and noted a "moderate recovery" in the economy, while Japan's private sector activity expanded at its slowest pace since February and the country's August inflation rate remained above the BOJ's target for the 17th straight month.
Chinese stocks defy regional declines as tech stocks rise, while the 10-year Treasury yield slightly decreases from a 16-year high; US futures tick higher following a 1.6% slide in the S&P 500; bond yields rise in Australia and New Zealand after positive US labor market data; and India's sovereign debt is set to be included in JPMorgan's benchmark emerging-markets index.
Most Asian stocks retreated as markets absorbed the outlook for higher interest rates and concerns over a property market crisis in China, while Japanese shares rose on the back of the Bank of Japan's dovish stance.
Asian shares fall due to concerns over interest rates, inflation data, and China's economy, while bond investors face the impact of the US Federal Reserve's more hawkish rate projections.
Global shares fell as central banks indicated that interest rates would remain higher for longer and investors awaited U.S. inflation data, causing concern over the economic outlook.
Asia-Pacific markets mostly decreased despite a rebound on Wall Street, with Japan's Nikkei 225 and Australia's S&P/ASX 200 experiencing losses, while the Kospi in South Korea and the Kosdaq in Hong Kong saw mixed results; in European luxury sectors, Bank of America upgraded three stocks that are deviating from negative trends; Moody's warns that a U.S. government shutdown would have a negative impact on credit; analysts have mixed opinions on the investment potential of tech giant Meta; Amazon's shares increased by 1.2% following its announcement of a major investment in AI startup Anthropic; the Federal Reserve suggests that interest rates may soon stabilize but at a higher level than expected; Chevron's CEO predicts that oil prices could reach $100 per barrel.
Shares in Asia and European equity futures fell while Treasury yields and the dollar rose, indicating that investors have yet to fully adjust their expectations for interest rates.
Asia-Pacific markets fell ahead of China's industrial data and Australia's inflation figures, while the US experienced a sell-off after disappointing economic data, causing the Dow Jones Industrial Average to fall below its 200-day moving average for the first time since May. Additionally, oil prices continue to rise, putting crude on track for its best quarter in over a year, and Tesla shares dropped after reports of an EU investigation into whether the company and other European carmakers are receiving unfair subsidies for exporting from China.
The US stock markets broke a four-day losing streak with gains in energy and materials sectors, while the Asian markets saw losses with technology stocks declining and concerns about China's property market stability. European markets opened in the red, awaiting economic data and earnings reports. Crude oil and natural gas prices decreased, while gold, silver, and copper prices fell. US futures and the US dollar index were down.
Asia-Pacific markets mostly fell due to an increase in Treasury yields and oil prices, leading to a decline in investor sentiment on Wall Street, with Hong Kong's Hang Seng index sliding 1.41% after shares of Evergrande were suspended.
Stocks slumped as the bond rout continues and one Fed policymaker predicted another interest rate hike this year, with the Nasdaq falling 0.5% and the S&P 500 and Dow Jones Industrial Average losing 0.4%.
US stocks fell as investors worried about the impact of higher interest rates, with the Dow down nearly 1.5% and the S&P 500 and Nasdaq indexes also dropping. Concerns about the Federal Reserve's policy and its effect on the housing market and potential recession led to the market decline.
Asia-Pacific markets rise as U.S. Treasury yields ease from 16-year highs following weak jobs data, with Japan, South Korea, and Australia all trading higher, while Hong Kong's Hang Seng index looks set for a rebound after losses on Wednesday; Carter Worth, CEO of Worth Charting, predicts lower interest rates and stocks by the end of 2023, contrary to consensus forecasts, while Vanguard's Aliaga-Diaz believes there is a limit to how high yields will go due to rate uncertainty; oil prices fall sharply, hitting their lowest level since September 5.
Summary:
US stock indexes closed lower as investors awaited monthly employment data and looked for insights into future interest rate directions, with the Dow Jones Industrial Average down 0.03%, the S&P 500 down 0.13%, and the Nasdaq Composite down 0.12%; in Asian markets, Japan's Nikkei 225 declined 0.28%, Australia's S&P/ASX 200 rose 0.41%, China's markets were closed for a holiday, and Hong Kong's Hang Seng index gained 1.40%; European markets, including the STOXX 600, Germany's DAX, France's CAC, and the UK's FTSE 100, all saw gains; and in commodities, Crude Oil WTI and Brent were down, Natural Gas was up, and Gold, Silver, and Copper all saw increases.
Asia-Pacific markets are expected to have a positive start to the week, with Chinese markets returning from a week-long holiday and investors watching inflation readings and trade data from China and India, as well as a monetary policy decision from Singapore's central bank. In Australia, the S&P/ASX 200 is up after a five-day losing streak, while futures for Hong Kong's Hang Seng index point to a stronger open. However, the outbreak of war between Israel and Palestine has affected stock futures and led to higher oil prices. There is also an increased likelihood of the Federal Reserve raising interest rates by the end of the year, causing utilities stocks to sink as investors find short-term Treasuries more attractive.
Asian shares mostly fell amid concerns about the U.S. banking system and Chinese economic growth, with Japan's Nikkei 225 down 0.2% and Hong Kong's Hang Seng down 0.4%, while China's export data showed the sharpest decline in three years. Bank stocks in the U.S. also fell after Moody's cut credit ratings for 10 smaller and midsized banks, citing concerns about their financial strength in light of higher interest rates and the work-from-home trend. The Federal Reserve's efforts to combat inflation by raising interest rates have led to a slowdown in the economy and hit banks hard.
Markets are increasingly expecting a Fed pause in interest rate hikes, with the chance of a rate increase in November dropping to 15.8%, down from 23.1% a week ago and 38.4% a month ago, as volatile Treasury yields play a major role in shaping market expectations.
Asian markets fall as inflation data raises expectations of Federal Reserve rate hikes; Australian, South Korean, and Japanese shares slip, and the Golden Dragon index of Chinese companies listed in the U.S. records its biggest drop in a month.
Asian and European stock markets experienced sharp declines due to weak economic indicators from China and concerns about potential interest rate hikes in the United States.
Asian stocks retreat as concerns over the Israel-Hamas war and fears of rising U.S. interest rates weigh on risk sentiment, with Japan's Nikkei index leading losses.
The U.S. stock markets decreased due to rising Treasury yields and investor evaluations of corporate earnings, while Asian markets, including Japan's Nikkei 225 and Australia's S&P/ASX 200, also experienced declines; the European STOXX 600 index and Germany's DAX also decreased, while crude oil, gold, and silver prices fell.
Asian stock markets fell on Friday, following the lead of U.S. markets, as bond yields increased and Federal Reserve Chairman Jerome Powell's remarks weighed on equities; South Korea's KOSPI Composite Index and Hong Kong’s Hang Seng Index were among the top losers, while Japanese inflation data showed price rises easing but still above the Bank of Japan's target rate of 2%.
