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[KoketsoIG]

Yuan weakness leaves PBOC little room for manoeuvre

Hong Kong's Hang Seng was the worst performer as the People's Bank of China (PBOC) cut the 1-year LPR by 10 basis points to 3.45%.

Forex Shares Bank United States China Macroeconomics

 

 Angela Barnes | Financial presenter/producer, London | Publication date: Monday 21 August 2023 09:20

Asia-Pacific equity markets

Equity markets were mixed in the Asia-Pacific region on Monday. Hong Kong's Hang Seng was the worst performer as the People's Bank of China (PBOC) cut the 1-year Loan Prime Rate (LPR) by 10 basis points to 3.45%. for the 5-year LPR, the PBOC decided to keep it at 4.2%. After a reduction of the medium-term loan facility rate by 15 basis points last week, the market expected the People's Bank of China to do the same with loan prime rates this Monday.

This decision highlights the economic conundrum Chinese authorities are facing. On the one hand, it needs to do something about its declining growth trend and stimulate weakened demand in the country. But on the other hand, the Yuan has been on a downward trend since the start of the year, and any further easing would trigger further selloffs.

German producer price index

In Germany, the latest producer price index, measuring the average change in the price of goods sold by manufacturers, fell further in July and more than anticipated. -1.1% compared to June and -6% on an annual basis.

Macroeconomic indicators

Among the macroeconomic indicators expected this week, we will be keeping an eye tomorrow on the UK government's public sector borrowing figures and US existing home sales. We also have a busy day Wednesday on the purchasing managers (PM) front with flash data on how manufacturing and services have been doing in the Eurozone, UK, and US. Then on Thursday, US durable goods orders and initial jobless claims will be released, so we will get a good gauge of how the US jobs market is doing.

On Friday, we get an insight into consumer confidence in the UK and the business climate in Germany. Europe's first economy will also share its final reading of the GDP growth rate. The first, or advanced, estimate released at the end of July showed that real GDP in Q2 grew at an annual rate of 2.4% in the second quarter of this year.

US Federal Reserve

After recording a fifth straight week of gains, the USD was little changed on Monday as traders awaited the Jackson Hole Symposium, certainly the biggest macroeconomic event this week. Running from Thursday to Saturday, the annual central bankers' symposium in Wyoming is hosted by the US Federal Reserve, and the bank's chair, Jerome Powell, will be speaking at the event. The markets will be looking for hints on the trajectory of interest rates, inflation, the economy, and anything else the central banking cohort decides to discuss in the coming days.

Zoom

On the equity markets, Zoom is expected to report Q2 earnings after the US closing bell. The Street expects earnings of $1.06 per share, which is one cent more than the same quarter a year ago. Revenue should come in at $1.11 billion. Zoom is one of the companies that benefited the most from the pandemic. Its technology allowed friends and families to stay in close contact and companies around the world to resume work remotely.

This couldn't last, and Zoom has so far failed to find alternatives to boost its profits. Even Zoom itself seems not to believe in remote working anymore. A couple of weeks ago, the group announced it had ordered workers to go back to the office.

Other earnings

Other earnings are expected throughout the week. It will be another important week for the retail sector, with reports from Urban Outfitters on Tuesday, followed by Foot Locker and Abercrombie & Fitch on Wednesday, and Dollar Tree and Gap on Thursday.

NVIDIA

But the real interest will be in the retail sector. NVIDIA reports on Wednesday evening, and the question is: can NVIDIA beat earnings expectations for a third time? NVIDIA is one of Wall Street's favourites since it has been surfing the wave ahead all its competitors. Earnings per share are expected to come in at $2.07 per share on $11.07 billion in revenue.

To understand how artificial intelligence is a game changer for NVIDIA, you just need to have a look at its quarterly report from a year ago: it then posted earnings of 58 cents per share, roughly a quarter of what it is forecast to post on Wednesday. and revenue came in at $5.93 billion.

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[MongiIG]

Charting the Markets: 21 August

Stock indices steady as PBOC reduces its 1-year loan prime rate to a record low. EUR/GBP stabilises, GBP/USD drops on UK retail sales while USD/JPY tops out.

Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Monday 21 August 2023

And Brent crude oil rises on China demand optimism but gold, silver prices remain under pressure.

 

 

 

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[KoketsoIG]

Longer-term yields soar as rates could stay high for longer

Equity markets rose in Asia, following the lead of the S&P 500 and Nasdaq on Monday and despite treasury yields soaring. The US 10-year treasury bond yield rose as high as 4.34%, its highest level in 16 years.

Shares IPO Revenue Stock market United States China

 

 Jeremy Naylor | Analyst, London | Publication date: Tuesday 22 August 2023 09:07

Equity markets

Equity markets rose in Asia, following the lead of the S&P 500 and Nasdaq on Monday and despite treasury yields soaring. The US 10-year treasury bond yield rose as high as 4.34%, its highest level in 16 years.

Softbank

SoftBank is having a second go at ARM's initial public offering (IPO). After a first attempt last year due to objections from U.S. and European antitrust regulators, the chip designer disclosed the paperwork for an initial public offering that is expected to be the largest of the year.

ARM did not reveal the number of shares it is planning to sell or the valuation it will seek. But according to an earlier report from Reuters, SoftBank is planning to sell about 10% of Arm's shares, seeking a valuation of between $60 and $70 billion.

BHP Group

BHP Group posted overnight its weakest annual profit since 2020, as it finds itself squeezed between surging costs, a tight labour market, and the weakening of western demand for commodities. BHP's underlying attributable profit fell by 37% to $13.42 billion, missing the estimate of $13.89 billion. The miner declared a final dividend of $0.80 per share, down from $1.75 per share a year ago. Yet BHP remains confident, as it sees China and India as relative sources of stability for commodity demand.

It expects China, its main trading partner, to produce more than a billion metric tonnes of steel this year for the fifth year running. And when it comes to the weakening of the Chinese economy, BHP thinks it is too early to assess the impact of Beijing's policy measures on the country's housing market.

John Wood Group

John Wood posted a net loss of $27 million and increased its finacial year (FY) revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) guidance. Revenue is now expected to be around $6 billion.

Oil and gas overview

Shares in the oil and gas engineer plummeted back in May after the company announced that the £1.7 billion takeover bid by Apollo, which valued the company at 240 pence per share, had been dropped by the US private equity group.

Zoom

Zoom shares rose in extended trading as the group's earnings and sales topped expectations. Excluding items, the company posted a second-quarter profit of $1.34 per share, compared with a target estimate of $1.06. Revenue for the quarter ended July 31 rose 3.6% to $1.14 billion, above analysts' average expectations of $1.12 billion.

Zoom also raised its annual earnings and revenue forecast; it now sees $4.63 to $4.67 in adjusted earnings per share, up from $4.30, and $4.485 billion to $4.49 billion in revenue, up from $4.49 billion, for the full 2024 fiscal year.

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[MongiIG]

Charting the Markets: 22 August

Procyclical AUD/USD and EUR/JPY find relief as US dollar dips. Indices rise on improved risk sentiment (Hang Seng, FTSE 100, S&P 500).

Commodities respond to softer USD and modest Chinese rate cuts (gold, silver), while global oil demand concerns weigh on Brent crude oil.

 Richard Snow | Analyst, DailyFX, Johannesburg | Publication date: Tuesday 22 August 2023 12:02

 

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

 

[MongiIG]

The dollar hovers near its two-month high peak ahead of PMI data

The US dollar trades near its two-month peak touched last week as traders await the Jackson Hole Symposium starting on Thursday.

 Jeremy Naylor | Analyst, London | Publication date: Wednesday 23 August 2023 

The US dollar

The USD trades near its two-month peak touched last week as traders await the Jackson Hole Symposium starting on Thursday. Throughout the day, published the latest PMI data for the month of August.

Europe economy overview

In Europe, two indicators will be particularly interesting. Germany's manufacturing activity has been contracting for the past 16 months and is now at its lowest since May 2020. Economists expect it to degrade further, to 38.7 after 38.8 in July. UK manufacturing the purchasing managers' index (PMI) is also forecast to contract further. The index is expected to reach 45 in August.

Eurozone consumer confidence

Last month, it fell to 45.3, its lowest level in three years. At 3 p.m., eurozone consumer confidence is anticipated to rise to -14.3 in August from -15.1 the previous month. Also at 3 p.m., US new home sales are forecast to fall by 1.6% in July compared to June.

NVIDIA

NVIDIA, one of Wall Street's favourites since it has been surfing the Al wave ahead of all its competitors, reported on Wednesday after the US closing bell. Earnings per share are expected to come in at $2.07 per share on $11.07 billion. A year ago, the group posted earnings of 58 cents per share on revenue of $5.93 billion. Traders and investors also await reports from Peloton Interactive, Snowflake, and Foot Locker.

Crude oil stocks

On Tuesday evening, the latest data from the application programming interface (API) showed a 2.4 million barrel drop in crude oil l stocks. Gasoline inventories fell by 150,000 barrels, and distillates rose by 1.9 million barrels. Iron ore rally continues on growing optimism in China.

 

 

 

 

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[MongiIG]

Charting the Markets: 23 August

European stock indices stay bid for now. EUR/USD, AUD/USD and GBP/USD slip on appreciating greenback. And Brent crude oil slips on demand concerns while gold, silver prices rise.

Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 23 August 2023 

 

 

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[MongiIG]

The dollar sways ahead of Jackson Hole

The Federal Reserve's central banking symposium gets underway this Thursday in Jackson Hole, Wyoming. A meeting that is likely to provide a swing point for the markets.

 Jeremy Naylor | Analyst, London | Publication date: Thursday 24 August 2023 

Jackson Hole

The Federal Reserve's central banking symposium gets underway this Thursday in Jackson Hole, Wyoming. A meeting that is likely to provide a swing point for the markets. The big question is: will it clear the air for the markets on where interest rates on both sides of the Atlantic will be going into the autumn? There is hope that the message will be that the worst of the global inflation shock is behind us, but what may come out is that while the corner may be in sight, it has yet to be turned.

The USD

Yesterday, the USD fluctuated as the purchasing managers' index (PMI) data was released around the globe. Germany's PMI gave a boost to the greenback, but gains were later cancelled by the US manufacturing PM's steeper-than-expected contraction.

Oil prices

Oil prices fell on the news, while gold rose and recorded its first daily gains this week. Also in the US, initial jobless claims are due at 1.30 p.m. Economists see 240,000 new claimants. And durable goods orders are expected to fall by 4% in July month-over-month (MOM).

Hays

Hays recorded a profit before tax of $192.1 million. Net fees reached £1.29 billion. The group declared a finacial year (FY) core dividend of 3 pence per share. Hays also announced the appointment of Dirk Hahn as its new CEO, with effect from September 1. At the end of February, the group announced it was looking for a successor to Alistair Cox.

Nvidia

NVIDIA reported an 88% jump in revenue and topped earnings estimates as its results for the second quarter were driven by demand for Al chips. NVIDIA's performance was driven by its data center business, which includes the A100 and H100 Al chips that are needed to build and run Al applications like ChatGPT.

Nvidia reported $10.32 billion in data center revenue, which was up 171% on an annual basis. The group posted adjusted earnings of $2.70 a share vs. $2.09 per share expected. Revenue jumped to $13.51 billion, way above the $11.22 billion expected. NVIDIA anticipates third-quarter revenue of about $16 billion.

Dollar Tree

Dollar Tree delivers second-quarter earnings before the bell today on Wall Street. The market anticipates earnings of 87 cents per share, roughly half what it earned in the second quarter of 2022. Revenue is forecast to rise by about 6% to $7.18 billion, but same-store sales are expected to continue to shrink.

Gap

Clothing retailer Gap brings its second quarter after the bell. Second-quarter fiscal 2024 revenue is forecast to come in at $3.58 billion, down 7% on the same quarter a year ago. Analysts also see adjusted earnings per share (EPS) of 10 cents, up from 8 cents in the year-ago quarter.

 

 

 

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[KoketsoIG]

Charting the Markets: 24 August

Stock indices rally as Nvidia reports stellar results. EUR/USD, EUR/GBP and USD/JPY focused on Jackson Hole symposium. And WTI, natural gas prices slip as gold heads for fourth straight day of gains.

 

 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Thursday 24 August 2023 12:00

 

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[KoketsoIG]

The dollar rises to an 11-week high; indices fall around the globe

The US dollar continued to rally on Friday morning, having a negative effect on equity markets. On Thursday, US indices fell in excess of 1%.

Forex Shares Gap Inc. Consumer confidence United States Inflation

 

 Jeremy Naylor | Analyst, London | Publication date: Friday 25 August 2023 09:12

The US dollar

The USD continued to rally on Friday morning, having a negative effect on equity markets. On Thursday, US indices fell in excess of 1%. Nikkei suffered losses in the Asia Pacific (APAC) region. At the Federal Reserve's (Fed) banking symposium today in Jackson Hole, we hear from Christine Lagarde at noon, and then at 3 p.m. the keynote address from Fed Chairman Jerome Powell.

The UK Consumer Confidence Index

UK consumer confidence rose more than expected in August. The index recorded its biggest gains since April, as evidence suggests that the high cost of living is finally beginning to ease. The Growth From Knowledge Consumer Confidence Index (Gfk) is still negative, though, and the easing of the situation is all relative. Rising to -25, five points better than the previous month. Economists anticipated a gain of only one point to -29.

The British consumer price index

British consumers' mood perked up as lower inflation made individuals less downbeat. With the consumer price index now at 6.8%, wage growth is now close to matching inflation for the first time in nearly two years. Households' expectations for their personal financial situation over the coming year rose to -3 from -7. A year ago, when energy prices were soaring, this indicator was down to -31. Part of this is the rise in wages, which are climbing at their fastest rate on record in the most recent data.

German economy overview

In Germany, final estimates of gross domestic product in the second quarter stayed unchanged, at 0% quarter on quarter (QoQ) and -0.2% on an annualised basis. At 9 a.m., Ifo's business climate is forecast to decline for a fourth straight month to 86.7 from 87.3 in July.

Gap

Gap posted its quarterly report yesterday after the closing bell. The clothes retailer posted 34 cents per share in earnings in the second quarter, higher than the 10 cents expected. Net sales fell 8% to $3.55 billion, narrowly missing analysts' estimates of $3.58 billion. As the top and bottom lines show, Gap has also been battling declining sales and even warned it was losing market share to rivals like Shein, Amazon, and T.J. Maxx.

Gap and Banana Republic

The group had no choice but to close underperforming Gap and Banana Republic stores to save on costs. Gap had to part with 2,000 jobs to shield its margins. Gap warned that sales would continue to decline at a steeper rate in the current quarter and now sees fiscal 2023 net sales decreasing in the mid-single-digit percentage range.

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[KoketsoIG]

Charting the Markets: 25 August

Stock indices give back gains ahead of Fed Chair speech. EUR/USD, EUR/GBP and GBP/USD drop despite rising UK consumer confidence. Brent crude oil recovers as gold, silver stall.

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 25 August 2023 11:56

 

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[KoketsoIG]

The HSI rebound continues after the government's market boost in China

APAC equity markets rose overnight in the wake of Monday's US session. Hong Kong's Hang Seng continued to outperform after the Chinese Finance Minister announced on Sunday that he would cut by half the stamp duty on stock trading.

Shares Commodities Stock market United States Revenue Inventory

 

 Angela Barnes | Financial presenter/producer, London | Publication date: Tuesday 29 August 2023 09:10

APAC equity markets

APAC equity markets rose overnight in the wake of Monday's US session. Hong Kong's Hang Seng continued to outperform after the Chinese Finance Minister announced on Sunday that he would cut by half the stamp duty on stock trading. After 17 months of suspension, Evergrande is trading again. The stock fell 79% on Monday and lost more ground overnight.

Toyota

In Japan, Toyota is suspending operations at all assembly plants in the country due to a problem with its production system. The automaker has already halted 12 of its 14 The last two will stop all activity on Tuesday afternoon. According to Reuters, these 14 plants in Japan account for around a third of Toyota's global production.

Japan's unemployment rate

Japan's unemployment rate unexpectedly increased to 2.7% in July from 2.5% in June, defying market forecasts for no change. This was the highest jobless rate in four months.

The British retail consortium

Prices in British store chains rose in August at the slowest pace in nearly a year, according to the British retail consortium. Annual shop price inflation cooled to 6.9% in August, its lowest since October 2022, weakening from 7.6% in July. Food price inflation fell to 11.5% from July's 13.4%.

The GfK consumer confidence

In Germany, GfK consumer confidence unexpectedly fell to -2.25 in September. Economists had anticipated a small increase from the 24.6 recorded last month.

US indices

Over in the US, the market awaits S&P/Case-Shiller home prices at 2 p.m., expected to rise by 0.6% in June. At 3 p.m., JOLT's job openings are forecast to fall for the third month in a row to just under 9.5 million. This would be the lowest level of openings since May 2021. Also at 3 p.m., conference board consumer confidence was seen at 116 in August, one notch lower than in July.

US equity markets

On the equity market, watch out for Bunzl shares at the open. The business supplies distributor raises its annual adjusted operating profit forecast on the back of lower operating costs and as acquisitions pay off.

Over in the US, the market awaits a few important corporate reports, starting with Best Buy at lunchtime. The electronics retailer hasn't had the best time recently, as it had to deal with too much inventory, which had a negative effect on its profits and margins. In the second quarter, Best Buy's earnings are forecast at $1.07 per share, to be compared to the $1.54 recorded in the same quarter a year ago. Revenue should reach $9.52 billion. But any positive news on the level of the stock could support it.

HP shares

Inventories are also a concern for HP, which will report on Tuesday after the close of the US market. The PC and printer maker is seen posting earnings of 86 cents per share, down 17% on the same quarter last year. Revenue is also expected to fall by 8.5% to 13.38 billion. HP shares have been on a slow but steady rise since October last year and hit a 52-week high in July, when a Gartner survey said that a gradual increase in demand contributed to an inventory reduction in the sector.

Hewlett Packard Enterprise

As for Hewlett Packard Enterprise, it will also report tonight after the bell. The enterprise-level hardware and software maker is forecast to post earnings of 47 cents per share, on cent lower than the same quarter a year ago. Investors will be particularly attentive to the group's performance in the new hot AI sector. In Q1, AI segment accounted for 3.8 percentage points of a 12.2% net revenue increase, in Q2, it contributed 1.9 percentage point to a 8.1% revenue rise.

In Q3, revenue is seen rising by 0.7% year-on-year (YoY) to just under $7Bln. The pace of revenue growth is not a new problem. It is mainly due to a decline of the hardware side of the business, and investors want to see AI as a new growing source of revenue.

Brent and WTI

Little moves on Brent Oil and WTI on Tuesday. The scenario remains the same. there are concerns over demand and possible US rate hikes, but these are offset by tight supplies. A tropical storm hit western Cuba yesterday and is heading towards Florida. It is likely to cause power outages and disrupt oil production on the eastern side of US Golf coast.

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[MongiIG]

Charting the Markets: 29 August

Stock indices track Asia higher. EUR/USD, GBP/USD and USD/JPY trade in low volatility. And Brent crude oil, gold and silver prices grind higher.

Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Tuesday 29 August 2023

 

 

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[KoketsoIG]

JOLTs data sends the dollar lower; gold and oil jump

The greenback fell on the late job data. JOLT's job openings came in at 8.827 million, lower than the 9.5 million expected, reducing the chances for further the Federal Reserve (Fed) rate hikes.

Forex Shares Commodities ETF Federal Reserve United States

 

 Jeremy Naylor | Analyst, London | Publication date: Wednesday 30 August 2023 09:17

Asia-Pacific equity markets

Asia-Pacific equity markets rose overnight, following US indices gains on Tuesday as the USD lost ground against major currencies. The greenback fell on the late job data. Job Openings and Labor Turnover Survey's (JOLT) job openings came in at 8.827 million, lower than the 9.5 million expected, reducing the chances for further the Federal Reserve (Fed) rate hikes.

The Reserve Bank of Australia

In Australia, too, there are hopes that the Reserve Bank of Australia (RBA) has done enough to beat inflation. Inflation in July fell to 4.9%, its lowest level since early 2022.

Macroeconomic indicators

A few macroeconomic indicators are scheduled throughout the day. In Germany, the consumer price index is expected to fall from 6.2 to 6%, but the risk may be on the upside because of soaring wages, which saw the Q2 wage data climb to 6.6%.

Over in the US, US private payrolls today from automatic data Processing (ADP) should slow to 195,000 from 324,000 in July. And the market awaits a second reading for Q2 gross domestic product (GDP). The US economy is expected to have expanded by 2.4%.

Prudential's operating profit

Elsewhere on the equity markets, Prudential's operating profit rose 3.6% in the first half to $1.46 billion. Annualised premium equivalent sales, a closely watched gauge of insurance sales, rose 37% to $3 billion following the end of China's zero COVID-19 policy late last year.

HP earnings

HP, an all-session stock on the IG platform, dropped in extended hours after missing revenue expectations and lowering its earnings forecast for the full year. For more than a year now, HP has been battling a slump in the PC segment. Inflation and an uncertain global economy triggered a decline in demand for consumer electronics.

Earnings came in line with expectations at 86 cents per share, helped by cost control measures, but revenue fell 9.9% to $13.20 billion, missing analysts' estimates of $13.37 billion. HP now forecasts adjusted earnings per share to be in the range of $3.23 to $3.35, up from earlier expectations of $3.30 to $3.50.

Oil prices

Oil rose substantially on Tuesday afternoon, as the dollar was falling. Investors are also increasingly worried about Hurricane Idalia, which is churning over the Gulf of Mexico, The offshore Gulf of Mexico accounts for about 15% of U.S. oil output and about 5% of natural gas production, according to the emergency liquidity assistance (ElA).

Oil also found support in the latest application programming interface (API) inventory data. The institute reported a 11.5 million-barrel fall in crude oil stocks, when analysts expected only a drop of 2.9 million barrels. Gasoline and distillate stocks rose, respectively, by 1.4 and 2.5 million barrels.

Bitcoin

Bitcoin rose more than 6% on Tuesday, a federal court ruled that the U.S. securities regulator was wrong to reject an application from Grayscale Investments to create a spot bitcoin exchange-traded fund (ETF). Judges said the SEC failed to fully explain its reasoning when denying Grayscale's product and should review its decision.

Grayscale

This court decision does not mean Grayscale's exchange-traded fund (ETF) is automatically approved, but it is nonetheless a big step towards the creation of the first product of its kind. Grayscale's CEO called the court decision a "historic milestone for American investors." As for the SEC, it said it was reviewing the court's decision in order to determine next steps. It has 45 days to appeal the ruling.

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[KoketsoIG]

Charting the Markets: 30 August

Stocks resume their bullish run. EUR/GBP and AUD/USD higher, while USD/CAD rally falters. And WTI, gold rise while Chicago wheat drops to near 3-month low.

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 30 August 2023 12:00

 

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[KoketsoIG]

The dollar holds losses and waits for more job data

Some economic data is out in the US. today at 1:30 p.m. and the UK should be of interest. Personal income and spending, core PCE prices, and initial jobless claims, meaning jobs data is one of the market's main focus this week.

Shares Commodities Price Consumer price index Unemployment /business/market_index

 

 Jeremy Naylor | Analyst, London | Publication date: Thursday 31 August 2023 09:17

APAC equity markets

Equity markets were mixed on Thursday in the Asia-Pacific region. Hong Kong's Hang Seng recorded losses as the NBS manufacturing purchasing managers' index (PMI) remained in contraction territory for a fifth straight month. Non-manufacturing PMI fell to 51 from July's 51.5, led by the continuing fall in services activity.

Japanese industrial production

In Japan, industrial production contracted 2% in July month-over-month (MoM), affected by weakening overseas demand and China's economic slump. Retail sales rose 6.8% in July from a year earlier, beating the market forecast for a 5.4% gain and marking a 17th month of increase.

Bank of Japan

Diverging comments from Bank of Japang (BOJ) board members suggest there is clearly no consensus on how soon the BOJ can scale back its massive monetary stimulus. One of them, Naoki Tamura, said on Wednesday that Japan's inflation was "clearly in sight" of the central bank's target. On Wednesday, another board member, Toyoaki Nakamura, warned that it would be premature to tighten monetary policy.

Recent increases in inflation were mostly driven by higher import costs rather than wage gains, and tightening before rising prices are accompanied by higher import costs rather than wage gains would hurt domestic demand and corporate profits.

Eurozone consumer price index

The consumer price index in the eurozone should decelerate for a fourth consecutive month. Headline consumer price index (CPI) is expected to be 5.1% in August year-on-year (YoY), down from 5.3% in July, a level not seen since January 2022.

JOLT

Some economic data is out in the US. today at 1:30 p.m and the UK should be of interest. Personal income and spending, core personal consumption expenditures (PCE) prices, and initial jobless claims, meaning jobs data is one of the market's main focus this week.

After the fall in the Job Openings and Labor Turnover Survey (JOLT) on Tuesday, the APD survey yesterday showed that employment in the private sector has softened in August. 177,000 jobs created. That is nearly 200,000 fewer than in July. Tomorrow, August non-farm payrolls Economists see 170,000 job creations, and the unemployment rate is forecast to stay at 3.5%.

UBS

Swiss banking giant UBS posted the biggest-ever quarterly profit for a bank in the second quarter as a result of its emergency takeover of Credit Suisse. The Q2 group net profit attributable to shareholders was $28.875 billion vs. analysts' estimates of $33.45 billion, so it was a disappointment, but the sheer size of the quarterly profit was a direct result of the accounting difference between the $3 billion price UBS paid for Credit Suisse and the value of the acquired lender's balance sheet.

In reality, there was a Q2 group negative goodwill of $28.9 billion. UBS confirmed that it would fully integrate the local business of Credit Suisse by next year.

Oil prices

Oil prices were little changed on Wednesday. The Emergency liquidity assistance (ElA) inventories show a substantial drop in crude oil stocks last week, confirming Tuesday's Application Programming Interfaces (API) data. Domestic production remained unchanged at 12.8 million bpd, its highest since March 2020, but strong exports and sustained demand from refineries meant that crude oil inventories fell 10.6 million barrels last week. U.S. gasoline stocks fell by 200,000 barrels, while distillate stockpiles rose by 1.2 million barrels.

This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.

[AshishIG]

Hi All,

In our ongoing efforts to streamline and improve your experience, we are making some changes to this (IGTV on Demand) forum (https://community.ig.com/forums/topic/16249-igtv-on-demand/).

Starting today, we are discontinuing the current IG TV On Demand forum. However, we are thrilled to announce the launch of a dedicated page that will serve as the new hub for IGTV On Demand which now will be available in Video format. You can access IGTV on Demand now at https://community.ig.com/igtv/
Alternatively, this can be accessed from the home page as well next to Blogs.

We understand the importance of preserving the valuable discussions and insights that have been shared in our forum over time. Rest assured, the forum will still be accessible for you to retrieve and reference old posts. We believe this transition will offer you a more user-friendly and organized platform to engage with IGTV On Demand.

Thank you for being a part of our community, and we look forward to your continued participation.

All the best,
AshishIG