02/02/2024
Today’s Announcements & News
Asia
Hong Kong and Korea saw higher share trades, while Japan’s equity benchmarks underperformed on Thursday. In Mumbai, shares of Paytm tumbled by the maximum 20% after Indian financial authorities instructed the digital wallet services provider to halt new deposits from March. The Caixin China general manufacturing purchasing managers’ index indicated factory activity in China expanded for a third consecutive month in January, in contrast to official data pointing to contraction. The U.S. Federal Reserve, in its latest announcement, signaled it was unlikely to cut rates in March, according to Fed Chair Jerome Powell. The S&P/ASX 200 in Australia closed down 1.2%, snapping an eight-day winning streak, while Japan’s Nikkei 225 and Topix both saw declines. In South Korea, the Kospi climbed, while Hong Kong’s Hang Seng and China’s CSI 300 also made gains.
US
The Dow Jones Industrial Average rebounded on Thursday, gaining 353 points or 0.9%, while the S&P 500 and Nasdaq Composite added 1.2% and 1.3%, respectively. The recovery followed a challenging day for the major averages after the Federal Reserve maintained rates but indicated that a March cut is unlikely. Earnings reports played a significant role, with Apple, Amazon, and Meta all contributing to the positive momentum. Pharmaceutical company Merck’s fourth-quarter beat also contributed to the Dow’s rise. The rebound came after a poor session, where the Dow, S&P 500, and Nasdaq Composite all experienced notable declines.
Commodity
Oil prices dropped on Thursday as traders monitored attempts to negotiate a cease-fire in the Israel-Hamas conflict. The West Texas Intermediate contract for March declined by $2.03 (2.68%), settling at $73.82 per barrel, while the Brent contract for April fell by $1.85 (2.30%) to settle at $78.70 per barrel.
Earlier in the session, the benchmarks had increased by over 1% as the market processed the outcomes of an OPEC committee meeting and the Federal Reserve’s decision on interest rates.
Meanwhile, gold strengthened, nearing a one-month high on Thursday. This followed data indicating a rise in U.S. weekly jobless claims. Market attention shifted to the U.S. non-farm payrolls data for further insights into the Federal Reserve’s policy direction. Spot gold rose by 0.9% to $2,054.89 per ounce, reaching its highest level since January 3 earlier in the session.
The above analysis is only for the views of market researchers and is for reference only and is not regarded as a specific investment suggestion.
