03/07/2023
Today’s Announcements & News
Asia
Asia-Pacific markets closed with mixed results on the final trading day of the first half of the year. The Dow Jones Industrial Average experienced gains, driven by the strong performance of major banks following their successful completion of the Federal Reserve’s annual stress test. Additionally, a revised U.S. gross domestic product print contributed to improved investor sentiment by alleviating concerns of a potential recession on Wall Street.
Looking ahead, investors will be monitoring the latest data on personal consumption expenditures, which is a key inflation indicator favored by the Federal Reserve.
In mainland China, the markets performed well, with the Shanghai Composite rising by 0.62% to close at 3,202.06, and the Shenzhen Component increasing by 1% to close at 11,026.58.
However, factory activity data in China revealed a contraction for the third consecutive month, as reported by the National Bureau of Statistics. Meanwhile, Hong Kong’s Hang Seng index remained flat during the final hour of trade.
US
U.S. stock futures showed little change on Sunday night, as traders prepared for the start of the second half of the year following a strong performance on Wall Street. Futures linked to the Dow Jones Industrial Average were up by just 8 points, while S&P 500 and Nasdaq-100 futures also saw marginal gains.
The Nasdaq Composite recorded its largest first-half gain since 1983, surging by 31.7% by the end of Friday. Similarly, the S&P 500 achieved its best first half since 2019, with a rise of 15.9%. The Dow Jones Industrial Average experienced more modest growth of 3.8%.
These gains were driven by the growing enthusiasm surrounding artificial intelligence, which propelled tech stocks, and positive economic data indicating the resilience of the U.S. economy, even in the face of higher interest rates.
Commodity
Oil prices settled higher on Friday, but they posted their fourth consecutive quarterly loss as concerns over sluggish global economic activity weighed on fuel demand. The August delivery of benchmark Brent crude futures, which expired on Friday, rose by 56 cents or 0.8% to settle at $74.90 per barrel. However, the contract finished the quarter down 6%. Similarly, U.S. West Texas Intermediate crude (WTI) settled up 78 cents or 1.1% at $70.64 per barrel, but it also experienced a second straight quarterly decline, down about 6.5% for the quarter.
The decline in oil prices has been attributed to factors such as rising interest rates in key economies and a slower-than-expected recovery in Chinese manufacturing and consumption.
On the other hand, gold was on track for its first quarterly decline in three, influenced by expectations of more U.S. interest rate hikes. However, moderate inflation figures provided some support on Friday. Spot gold rose by 0.5% to $1,917.94 per ounce, while U.S. gold futures settled 0.6% higher at $1,929.40.
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.
